JPMorgan CEO: "Too Much Exuberance" in Stocks -- Should Investors Beware?

Jamie Dimon, CEO of JPMorgan Chase (NYSE: JPM), is one of the most respected voices of the financial industry. No CEO has a perfect crystal ball to predict what's happening next with the economy or stock prices, but when Jamie Dimon talks, people listen.

In a recent interview with Bloomberg on March 2, Dimon said that "the economy is doing fine, asset prices are high." But he also expressed concerns that investors might be a little too optimistic and not paying enough attention to risks, such as the latest conflict in the Middle East. Dimon told Bloomberg: "I think there's a little more exuberance than there should be, but we've had years of it."

Let's look at the case for caution in today's stock market, and what you should do if you're worried about overvalued stocks.

Image source: Getty Images.

Are U.S. stocks overvalued?

The U.S. stock market has had a sluggish start to 2026. The S&P 500 index has been basically flat, up 0.4% year to date, while the tech-heavy Nasdaq-100 index is down about 0.5%. But in the past year, the S&P 500 gained 19% while the Nasdaq-100 is up more than 23%.

Could U.S. stocks be in store for a big correction? Despite the risks of a new Middle East war with Iran, investors don't seem to be running away from U.S. stocks. As of March 4, the S&P 500 was trading at about only 2%-3% below its all-time high of 7,002. The price-to-earnings ratio of the S&P 500 is about 29.4, which is near its highest levels of the past five years. And the P/E ratio of the Nasdaq-100 is about 32.9, which is even more expensive.

There's a huge amount of uncertainty among investors right now about whether AI stocks are overvalued, or tech stocks like software as a service (SaaS) companies are exposed to big risks of future AI disruption. Several major tech names like Microsoft, Amazon, and Meta have underperformed the S&P 500 index during the past year.

SPY data by YCharts

In his interview with Bloomberg, Dimon did not endorse or make predictions about any specific stock, fund, or asset class. But if you agree with the idea that stock valuations are a bit too high, here's what you could do with your money.

Where to invest your money now

If you believe that U.S. tech stocks are overvalued or AI is overhyped, you might want to diversify your portfolio into other parts of the market. Assets that are less exposed to U.S. tech companies include international stocks, U.S. value stocks, and bonds.

You might also consider bonds. One of the best bond ETFs is the Vanguard Total Bond Market ETF (NASDAQ: BND). This bond fund lets you own 11,429 investment-grade U.S. dollar-denominated bonds and can be appropriate to try to diversify your portfolio against the risks of stocks. The fund has delivered average annual returns of 5.1% for the past three years. And so far in 2026, this U.S. bond ETF is outperforming the S&P 500 and the Nasdaq-100 stock indexes.

There's no such thing as a perfect move to protect your investments from market risks. But if you're worried that U.S. stocks are due for a big downturn, this bond ETF might be a good buy.

JPMorgan Chase is an advertising partner of Motley Fool Money. Ben Gran has positions in Vanguard Total Bond Market ETF. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Meta Platforms, Microsoft, and Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.