The US stock market is “inflated”.

JPMorgan Chase CEO Jamie Dimon on Wednesday he called the US stock market swollen and said he was feeling more cautious than others in the business world about the risks of deficit spending, inflation and geopolitical unrest.

“Asset prices are kind of inflated, by any measure. They’re in the top 10% or 15% of historical valuations,” Dimon told CNBC’s Andrew Ross Sorkin. World Economic Forum in Davos, Switzerland.

Dimon said he was talking specifically about the U.S. stock market, which is in the midst of a multi-year bull run.

The S&P 500 had annual gains of more than 20% in 2023 and 2024, the first time in 25 years. Last year, Dimon also called his shares own company expensive

On Wednesday, Dimon also noted that parts of the bond market, like sovereign debt, are at “all-time highs.”

“So yes, they are high, and you need pretty good results to justify those prices,” Dimon said. “Having pro-growth strategies helps make that happen, but there are negatives out there, and they can surprise you.”

Dimon, 68, is one of the most respected voices in finance after building JPMorgan into the largest American bank by many measures, including assets and market valuation.

He’s been cautious since 2022, when he said “the hurricane“It was heading for the US economy. That storm, however, has yet to arrive as the US has beaten expectations in recent years, and the election of Donald Trump in November raised expectations about what a pro-growth administration will do.

“I’m a little more careful about a lot of things,” Dimon said Wednesday. “What I’m a little cautious about is deficit spending — it’s a global problem, not just an American problem,” he said. “And the related (question), ‘Will inflation go away?’ I’m not so sure.”

The rise of global conflict, including the war in Ukraine, tension in the Middle East and the growing threat of China “has me very concerned about how it will affect our world over the next 100 years,” Dimon said.

In the wide-ranging interview, Dimon expressed his support rates If they strengthen national security on imports to the US, he and the tech entrepreneur said Elon Musk be smooth it out previously conflicted relationship. Dimon also said he had no plans to run for office in 2028.

Later on Wednesday, Goldman Sachs CEO David Solomon acknowledged that the stock market’s valuations were high, and stated that they could be justified by the excitement of the impact of both. artificial intelligence and expected moves by President Trump relax Regulations for US companies.

“It’s hard to argue that the stock multiples are high,” Solomon said. “Markets look forward, and we’re coming out of a very, very tough regulatory environment across industries.”

If Trump administration officials allow more mergers to happen, spurring capital markets activity, it could boost GDP growth by half a percentage point, Solomon said.