JPMorgan CEO is concerned about rising economic risks

Jamie Dimon warned that the US economy may be heading toward trouble, even though markets look strong. 

Speaking at JPMorgan’s annual investor meeting, he said high asset prices and heavy competition among lenders remind him of the three years before the 2008 financial crisis.

Despite fierce competition, JPMorgan remains cautious. Dimon said the bank refuses to chase risky leveraged loans just to win business.

But with competitors aggressively pursuing questionable loan deals, he worries that soaring asset prices are breeding overconfidence in the financial sector.

The S&P 500 continues to trade close to an all-time high, reflecting strong investor confidence. Some economists credit tax cuts and deregulation for supporting growth. However, Dimon warned that when profits surge and borrowing rises, financial firms may take excessive risks.

Private credit under pressure
Stress has already appeared in private credit markets. Blue Owl Capital recently sold assets to meet investor withdrawals, which has shaken confidence.

The news dragged down shares of alternative asset managers, including Apollo Global Management, KKR, and Blackstone. Analysts now question whether broader credit weakness could follow.

Preparing for the next cycle
Dimon said every downturn brings unexpected trouble spots. This time, he warned, software companies exposed to artificial intelligence could face pressure.