The "Wall Street king" has issued a new warning: the valuation of US stocks may be "a bit inflated".

Jamie Dimon, the CEO of JPMorgan Chase, the Wall Street bank known as the "king of Wall Street", warned on Wednesday that there were indications of overheating in the US stock market and expressed caution due to the risks posed by deficit spending, inflation, and geopolitical turmoil. He stated that asset prices were somewhat inflated, with prices at the top 10% or 15% of historical valuations by any standard. Dimon noted that the US stock market was currently in a prolonged bull market and pointed out that some bond markets, such as sovereign debt, were also "at historic highs." He emphasized that while price increases were occurring, they needed to be justified by strong performance. Strategies aimed at boosting growth could help achieve this, but they also had negative aspects that often exceeded expectations. Dimon, aged 68, is a highly influential figure in the financial world. Since 2022, he has been issuing warnings, stating that a "hurricane" was approaching the US economy. However, this storm has yet to materialize, as the US economy has exceeded market expectations in recent years. Dimon stated, "In many respects, I am indeed more cautious. I am a bit cautious about deficit spending; it's a global issue, not just an American issue. There are related issues, 'Will inflation disappear?' I'm not sure." Dimon added that the escalating global conflicts, such as the war in Ukraine and tensions in the Middle East, "have me very concerned about what our world will look like in the next 100 years." Dimon's comments were made on the third day of Trump's second presidential term, and Wall Street generally welcomed Trump's return, as financial executives perceive him as more pro-business and growth-oriented than Biden. Dimon expressed that many bankers were "ecstatic" after the 2020 US election, and since Trump's election, the S&P 500 index has risen by 4.6%. Earlier in the month, Dimon also stated that he was not surprised by Trump's victory in the US presidential election. In a 2021 interview at the World Economic Forum, he said that Trump was "right in some ways" on certain issues. #End of Polished Translation