Dimon Warns 10-Year Bonds Offer Little Upside as JPMorgan Posts $21.2 Billion Profit
Updated
Updated · Business Insider · Jul 21
Dimon Warns 10-Year Bonds Offer Little Upside as JPMorgan Posts $21.2 Billion Profit
3 articles · Updated · Business Insider · Jul 21
Summary
JPMorgan CEO Jamie Dimon said he would not buy long-dated government bonds, arguing 10-year yields near 4% to 4.5% already leave little upside even if inflation falls to 2%.
Inflation above 3% for nearly five years, global debt-to-GDP near 100%, and a US deficit at 6% led him to warn governments will wait for a crisis, pushing rates higher and rattling markets.
On geopolitics, Dimon said the US should accept a year of higher gas prices to economically squeeze Iran rather than risk it obtaining a nuclear weapon within 10 years.
On AI, he backed the technology's long-term value but said the current spending boom will "definitely not" pay off on investors' expected timetable, comparing it to the dot-com era.
In New York, Dimon said JPMorgan's headcount fell to 26,000 from 35,000 over 20 years while Texas rose to 35,000 from 11,000, underscoring his warning that cities now compete harder for employers.