Jamie Dimon Says ‘Watch Out’ Because High Asset Prices Increase Economic Risk: ‘My Concern Is High’

JPMorgan Chase Chief Executive Officer Jamie Dimon said Monday he was concerned about the U.S. economy, citing rising asset prices and a competitive environment in the banking sector that reminded him of the years before the 2008 crisis.

Even as economists tout the Trump administration’s tax and regulatory policies as boosting economic growth this year, Dimon said during his annual investor update that his own inclination was to look at what could go wrong when expectations rise.

“My own view is that people feel a little bit comfortable because this is real, these are high asset prices and high volumes, and we’re not going to have any problems,” said Damon, who was dressed in black and wearing a brace on one hand.

The economic cycle will inevitably turn, Dimon said, triggering a wave of borrower defaults that will widely impact lenders, often impacting industries that few people expect.

“There’s going to be a cycle one day,” Damon said. “I don’t know what confluence of events will cause that cycle. I’m very concerned about it.” “I’m uncomfortable with the fact that asset prices are high. In fact, I think that increases the risk.”

While concerns about how artificial intelligence models from Anthropic and OpenAI will disrupt countless industries — especially software companies — have roiled markets in recent weeks, the broader S&P 500 is not far from its record level at all.

Meanwhile, concerns about loans to software companies amid concerns about artificial intelligence have clamped down on private credit lenders after Blue Owl spooked markets last week when it announced it had to sell assets to satisfy investors demanding an exit from one of its funds.

This incident led to a decline in the shares of the largest alternative asset management companies, including… Apollo, KKR and BlackstoneIt prompted some market watchers to wonder whether the beginning of a broader decline in credit had begun.

“There is always a surprise in the credit cycle,” Dimon said. “The surprise has often been the industry most affected,” he said. “You wouldn’t expect the utility and phone companies in 2008 and 2009, and this time, it might be software, because of artificial intelligence.”

Dimon also said he supported his representatives’ comments on private credit earlier in the investor event.

Troy Rohrbaugh, co-head of the company’s commercial and investment bank, said he didn’t think the problems were likely to be limited to private credit lenders, but would instead be a “broader base.”

“At this point, it seems a little isolated in a few situations, but that could easily change, and we are prepared for that,” Rohrbaugh said.

In response to a question from veteran banking analyst Mike Mayo, Dimon said the current environment looked similar to the three years before the 2008 financial crisis where “everyone was making a lot of money, people were taking advantage, and the sky was the limit.”

The JPMorgan boss said some financial companies are “doing some stupid things” involving chasing interest income, which is done through lending and investing activities, though he did not name the companies that do so.

“You feel stupid when everyone is minting money and everyone is cool…it feels really good,” Damon said.

“And when I think about all the factors that are going on, I take a deep breath and say, ‘Pay attention,'” Damon added.

Dimon also addressed the perennial issue of CEO succession at JPMorgan, which he built into the world’s largest bank by market capitalization during his two-decade tenure.

While he often gives a specific time frame for the number of years he has been CEO, he avoided doing so on Monday.

“I was asked to say that very specifically,” Damon said, to scattered laughter among the analysts in attendance. “I’m here for a few years as CEO, and maybe a few years after that as CEO.”