Billionaire Jamie Dimon Still Believes America Is Worth Investing In, Despite Trump Tariffs and Market Fluctuations. Should You Buy These 3 U.S. Stocks in 2025?
On May 19, JPMorgan Chase had an investor-day presentation and billionaire CEO Jamie Dimon had a lot to say about the economy, global trade, and investing. And much of it sounded negative.During the presentation, Dimon brought up the subject of U.S. stagflation -- the dreaded combination of ongoing inflation and economic recession at the same time. Policymakers generally try to keep inflation low and economic growth high. When they intervene, it usually sacrifices one to benefit the other. But when both inflation and growth are moving in the wrong direction, it leaves them with little options to improve the economy.Dimon also essentially said that U.S. stocks were overvalued and perhaps due for a 10% decline. The billionaire CEO is looking at the market's valuation compared to its future earnings estimates (known as the forward price-to-earnings ratio), which is already high right now. But Dimon believes economic conditions are deteriorating, partially because of trade tariffs, and that earnings estimates are consequently too optimistic. As estimates come down, the stock market could drop.Continue reading
On May 19, JPMorgan Chase had an investor-day presentation and billionaire CEO Jamie Dimon had a lot to say about the economy, global trade, and investing. And much of it sounded negative.
During the presentation, Dimon brought up the subject of U.S. stagflation -- the dreaded combination of ongoing inflation and economic recession at the same time. Policymakers generally try to keep inflation low and economic growth high. When they intervene, it usually sacrifices one to benefit the other. But when both inflation and growth are moving in the wrong direction, it leaves them with little options to improve the economy.
Dimon also essentially said that U.S. stocks were overvalued and perhaps due for a 10% decline. The billionaire CEO is looking at the market's valuation compared to its future earnings estimates (known as the forward price-to-earnings ratio), which is already high right now. But Dimon believes economic conditions are deteriorating, partially because of trade tariffs, and that earnings estimates are consequently too optimistic. As estimates come down, the stock market could drop.
