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

By Ben Gran – Mar 9, 2026 at 10:15AM ESTKey PointsU.S. stocks have had a slow start to 2026 but are still trading near all-time highs.There are steps you can take to protect your portfolio from a stock market downturn. One option is to invest in bonds through the Vanguard Total Bond Market ETF. Jamie Dimon, CEO of JPMorgan Chase (JPM 2.18%), 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 (BND +0.09%). 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. ExpandNASDAQ: BNDVanguard Total Bond Market ETFToday's Change(0.09%) $0.07Current Price$74.31Key Data PointsDay's Range$74.12 - $74.3152wk Range$71.41 - $75.23Volume108K 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.Read NextFeb 23, 2026 •By David DierkingWhy the Vanguard Total Bond Market ETF Is a Smart Choice to Diversify Your PortfolioFeb 18, 2026 •By David Dierking3 Vanguard ETFs to Buy Hand Over Fist if the Stock Market Crashes in 2026Feb 17, 2026 •By David DierkingWhich Vanguard Bond ETF Should You Choose, BND or VGIT?Feb 17, 2026 •By Ben GranVanguard Says: This Bond ETF Could Beat U.S. Stocks for YearsFeb 16, 2026 •By David Dierking3 Vanguard ETFs to Buy to Protect Your Portfolio From a Potential Stock Market CrashFeb 15, 2026 •By Adé HennisVanguard's BND Offers Bigger Pay and Lower Fees Than Fidelity's FIGBAbout 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 Total Bond Market ETFNASDAQ: BND$74.31(+0.09%)+$0.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.