JPMorgan Chase CEO Jamie Dimon Dropped a 9-Word Warning: "Margin Debt Is the Highest It Has Ever Been." Should Investors Be Worried?
Jamie Dimon is just calling it as he sees it, and investors should probably be worried by what he sees.
Overview
JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon is very clearly telling investors that they need to start worrying. In his company's second-quarter earnings release, he highlighted geopolitical tensions, inflation, fiscal deficits, and elevated asset prices as areas of concern. And, in an interview with CNBC, he noted that margin debt is at an all-time high. That last one could lead to a downward spiral that breaks the bull market. Here's what you need to know.
What's interesting in the list of concerns Jamie Dimon outlined in his company's second-quarter earnings is that asset prices are elevated despite the other negatives. Now, there is an old saying on Wall Street that the market climbs a wall of worry, so perhaps you could dismiss this situation. But when you add in record levels of margin debt to the equation, the story takes a very different turn.
Image source: JPMorgan Chase & Co.
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Originally published at www.fool.com.