How to Protect Your Portfolio From Jamie Dimon's "Skunk in a Party"

By Ben Gran – Mar 9, 2026 at 11:15AM ESTKey PointsThe longtime CEO of JPMorgan Chase called the risk of long-lasting high inflation a "skunk in a party."Investors who are worried about higher energy prices causing inflation might want to buy utility stocks. Jamie Dimon, CEO of America's largest bank, JPMorgan Chase (JPM 2.06%), is worth listening to when he shares his concerns about risks to the economy. For the past few years, Dimon has been saying that geopolitical risk, such as Russia's invasion of Ukraine, is top of mind for him. Now that America is engaged in a new war in Iran, Dimon was asked what he thought might happen next for oil prices and inflation. In a March 2 interview with CNBC, Dimon expressed optimism that if the Iran conflict is short, it would not lead to a long-term upsurge in inflation. But he warned that inflation is still a risk that investors are a little too complacent about right now. If inflation sticks around longer than investors expect, Dimon said, inflation could be like a "skunk in a party." If you're worried about the Iran war or other inflation risks, here's an idea for how to invest. Image source: Getty Images. What to think about Iran war inflation risks If the war in Iran causes severe disruptions to oil supplies, such as Iran shutting down international shipping through the Strait of Hormuz, this could make gas prices go up. But other countries can also take actions to keep shipping lanes open or boost oil supplies from other places. When asked by CNBC if he sees a risk of long-lasting inflation due to higher oil prices as a result of the conflict, Dimon said no. He said that the current Iran conflict "will increase gas prices a little bit. And, again, if it's not prolonged, it's not going to be a major inflationary hit." But crude oil prices are already up about 30% year to date. If oil prices stay higher for longer, this could spill over into higher inflation throughout the economy. Even if oil prices don't stay high, Dimon sees some risk that the economy could still have too much inflation built into it. He told CNBC, "I think there's some risk there is more inflation than people think, and that could be like a skunk in a party if that ever happens." How to invest for higher inflation A few typical investments to protect against higher inflation are oil stocks, commodities, and utilities.

The Vanguard Utilities Index Fund ETF (VPU 0.53%) is an easy way to invest for a future of higher energy prices. ExpandNYSEMKT: VPUVanguard Utilities ETFToday's Change(-0.53%) $-1.07Current Price$200.53Key Data PointsDay's Range$198.68 - $200.8052wk Range$154.00 - $206.10Volume3K This utility ETF lets you own 67 stocks in electric utilities, gas utilities, water utilities, and more. The fund's top holdings include major utilities NextEra Energy (12.2% of the fund), Southern Co. (6.4%), Duke Energy (6.4%) and Constellation Energy (5.9%). This utility ETF has delivered average annual returns of 10.9% for the past 10 years, and it's up 10.5% year to date. It charges a low expense ratio of 0.09%. And it might be undervalued.

The Vanguard Utilities Index Fund ETF's price-to-earnings ratio is only 21.2, which is cheaper than the S&P 500 index P/E ratio of 29.3. Buying utility stocks is a way to make a broad bet on future demand for energy. It won't protect you from every risk, but this utility ETF could be a good buy in case inflation sticks around.Read NextMar 3, 2026 •By Daniel Foelber7 of Vanguard's 11 Sector ETFs Are Crushing the S&P 500 in 2026. Here's My Favorite to Buy in March.Jan 30, 2026 •By David Jagielski, CPAThis Low-Cost Vanguard Fund Could Help Keep Your Portfolio Safe in 2026Dec 13, 2025 •By Trevor JennewineA Once-in-a-Decade Investment Opportunity: 1 Vanguard Index Fund to Buy for the AI BoomNov 4, 2025 •By Reuben Gregg BrewerThe Smartest Vanguard ETF to Buy With $1,000 Right NowOct 22, 2025 •By Keith SpeightsThe Best Vanguard ETF to Invest $1,000 In Right NowOct 20, 2025 •By Reuben Gregg BrewerThis Vanguard Index Fund Is a Once-in-a-Decade Buying Opportunity for the Artificial Intelligence (AI) BoomAbout the AuthorBen Gran is a contributing analyst at The Motley Fool, covering publicly traded companies in consumer goods, technology, transportation, industrials, materials, and energy. He is a longtime freelance finance writer with 15+ years of experience writing for publications like Forbes Advisor, Motley Fool Money, and Business Insider, and corporate websites of Prudential and regional banks. Ben also ghostwrites books and bylines for CEOs and other business thought leaders. He earned his B.A. in History from Rice University. Ben is an avid international traveler and has visited 12 countries (and counting).TMFBenjaminGranStocks MentionedVanguard Utilities ETFNYSEMKT: VPU$200.53(-0.53%)-$1.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.