JPM CEO Jamie Dimon says he wouldn't touch Treasurys with a 10-foot pole

JPMorgan Chase CEO Jamie Dimon said that low-yielding Treasurys are a poor investment right now.

“I would not be a buyer of Treasurys,” Dimon said Tuesday at an annual Goldman Sachs financial services conference. “I think Treasurys at these rates, I wouldn’t touch them with a 10-foot pole.”

The yield on the 10-year Treasury was last at just 0.9% and has stayed below 1% since breaking below that threshold during the March pandemic collapse in stocks. Since bond prices must move inversely to yields, people like Dimon see little room for Treasurys to rally with rates already at such low levels.

Of course, as the head of a lending institution with $3.2 trillion in assets, JPMorgan has to continually purchase Treasurys and other low-yielding investments to earn a spread, a fact that Dimon acknowledged. Low yields in the fixed income world are one reason that banks’ profitability and stock values have been under pressure since the pandemic began.

Dimon’s comments were in response to a question from Goldman Sachs analyst Richard Ramsden about whether the markets were fairly priced.

The long-time JPMorgan CEO and chairman responded that if investors’ base case occurs – a recovery next year spurred on by coronavirus vaccines — then that means today’s “bond spreads and most equity prices would be justified.”

″There may be a bubble in small parts of the stock market, not all of it,” Dimon said.

However, if inflation picks up because of the government’s fiscal stimulus programs that delivered money to households and businesses, bonds purchased today could end up being a money loser.

Separately, Dimon said that JPMorgan’s expenses will be higher than $67 billion next year, above the $66 billion estimate of many analysts, as the bank is “finding things we want to invest in.”

He also added that fourth-quarter revenue in both trading and investment banking operations is tracking 20% higher than a year earlier.

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[lukemckee]

Ceo of a fraudulent company calling out the biggest bubble in history, what a time to be alive

[MrKT]

Treasurys=Return free risk. In a sense he is right there is no bubble. If you consider the current interest rates on a 10 year treasury than the current market actually makes sense. But if 10 year treasury was 5% tomorrow then we would suddenly be about 2x overvalued.

[tbseow]

The writing is on the wall. Interest rates will rise.

[muaddib]

He also said BTC was worthless until he came out with their own crypto scheme

[dolcevitaspain]

He also said Bitcoim is a scam. No respect for liar working in a laundry JP bank.

[buysellholdfinance]

If banks really have no choice, sell negative interest treasuries. No choice!

[seans]

Karen is putting me to sleep. Wake up, lady, have some coffee. Have some energy bar.

[wpyx]

He just said he's not going to touch them with a ten-foot pole, but he's going to buy them.

This man is confused.

[vm]

I wonder why are they lying. Banks are buying Bond like no tomorrow.

[davidscher]

Wheres cramer when you need him? Buy buy buy!

[patrickbateman]

*Papa Powell has a money printer!!!*
📇💵💵💵💵💵💵💵💵💵💵💵