BlockBeats News, July 21st. JPMorgan Chase CEO Jamie Dimon stated that investors are underestimating the geopolitical and fiscal risks facing the global economy. At current prices, he would not buy into the overall stock market nor purchase long-term US Treasury bonds.

Dimon pointed out that the Russia-Ukraine conflict, Middle East tensions, US-China relations strain, and the backdrop of expanding government deficits with rising military spending could eventually impact the market. Although the global economy is more resilient due to reduced energy dependence, this does not rule out a sudden market reversal. The persistently high US fiscal deficit may eventually push up interest rates, and bond investors will demand higher returns to hold government debt.

He believes that even if inflation falls back to the Federal Reserve's 2% target level, the yield on the 10-year US Treasury bond could still be between 4% and 4.5%, limiting the upside potential of long-term US bonds. Regarding stocks, Dimon stated that if individual stocks are high-quality investments, he would consider buying, but he would not purchase the broad market at the current valuation levels. The S&P 500 Index has risen nearly 10% year-to-date.

Regarding AI, Dimon compared the current investment frenzy to the early days of the internet. He believes that massive AI spending may overall receive returns similar to the internet, but the manner and timing of returns "definitely won't be as people expect." He noted that early internet giants like Yahoo and Netscape faded away, and the eventual winners like Google and Facebook emerged later.