JPMorgan Chase CEO Jamie Dimon isn’t one to sugarcoat his views on the economy — and his latest take on the stock market is anything but reassuring.
“Asset prices are kind of inflated,” Dimon told CNBC on Jan. 22 at the World Economic Forum in Davos, Switzerland. “I’m talking about the U.S. stock market.”
His concern isn’t without merit. The U.S. stock market has been on a tear in recent years, with the S&P 500 soaring 23% in 2024 after an impressive 24% gain in 2023. Over the past five years, the benchmark index has skyrocketed over 80%, fueling fears that valuations may be running too hot.
Dimon has expressed caution before. According to Reuters, he told investors in May he was “cautiously pessimistic” about the economy. And he’s not alone.
Legendary investor Jim Rogers warned last year that America was “long overdue for a problem” and that the next crash could be the “worst” in his lifetime.
If you share these concerns, here are some strategies to protect your portfolio.
When markets look shaky, investors often turn to gold — and for good reason. The precious metal is seen as a store of value, offering protection against inflation, economic downturns and stock market volatility.
Rogers has long been a proponent of precious metals as a hedge against uncertainty. In an October interview with Wealthion, he explained why he continues to hold gold and silver.
“I know from history that the world is going to have problems again … and when the world has problems … it’s nice to have some gold in the closet, or under the bed, have some silver in the closet,” he said. “Because no matter what, many people will turn to gold and silver in times of turmoil.”
Even though markets aren’t in crisis mode, investors have been piling into precious metals. Gold has climbed around 35% over the past year, surpassing $2,700 per ounce, while silver has posted impressive gains of around 36%, reaching over $30 per ounce.
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Gold and silver are also widely considered effective hedges against inflation. Unlike fiat currency, these metals cannot be printed in unlimited quantities by central banks.
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