JPMorgan Chase chief executive Jamie Dimon has cautioned that investors are underpricing risks to the global economy and said he would not purchase equities or long-dated U.S. Treasurys at prevailing market levels.

In an extended interview released late Monday, Dimon highlighted several geopolitical and fiscal pressures not fully reflected in asset prices. These include ongoing conflicts in Ukraine and the Middle East, U.S.-China frictions, elevated military expenditures and expanding government budget shortfalls.

He noted the challenge of determining precisely which risks markets have already incorporated, while stressing that unforeseen developments pose the greater concern. Although the global economy has grown more resilient due to reduced energy dependence compared with past decades, Dimon warned that this does not eliminate the possibility of abrupt shifts.

Persistent U.S. fiscal deficits are likely to create difficulties over time, he added, potentially driving interest rates higher as investors seek greater compensation for holding government debt. On Treasury securities, Dimon said he would not buy long-dated bonds personally and suggested the 10-year yield ought to stand between 4 percent and 4.5 percent, even assuming inflation returns to the Federal Reserve’s 2 percent objective.

Regarding equities, he expressed reluctance to invest in the broader market at current valuations, though he would consider select individual stocks that represent compelling opportunities. On artificial intelligence, Dimon drew parallels to the early stages of the internet expansion, predicting that substantial current spending would ultimately generate returns, albeit on a slower timeline than many market participants anticipate.