Part 4/8:
This historical analogy underscores the current fears about inflation returning with similar ferocity and possibly leading to multiple market crashes again. Dimon shared his persisting concern about rising inflation and the potential for drastic rate hikes to stabilize the economy.
Asset Valuations at Record Highs
In addition to inflation risks, Dimon noted that asset prices are currently at or near all-time highs. According to him, they fall within the top 10-15% of historical valuations, mirroring situations that preceded previous financial crises, notably in 2000 and 2008. With the S&P 500 index reportedly achieving a 166% gain over the last five years, including a significant correction in 2022, this raises questions about the sustainability of such growth.