A Warning From JPMorgan's Jamie Dimon

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Getty Images Good morning! Here's the latest in trending:Never sell? Despite its underwater holdings, Michael Saylor's Strategy (MSTR) is doubling down on Bitcoin as the asset heads for its worst month since June 2022.Bidding war: Here's what analysts are saying about Paramount's (PSKY) new bid for Warner Bros. (WBD) as it attempts to break up the merger with Netflix (NFLX).No interference: William Wiatrowski, acting commissioner of the Bureau of Labor Statistics, has rejected speculation of falsified economic data or "cooking the books." Watch out! Aggressive competition and lower credit standards are leading some firms to take higher risks to boost profitability metrics, according to JPMorgan (JPM) CEO Jamie Dimon. Market participants should stay vigilant and prepare for potential shifts in credit quality, especially given growing risks in private credit, non-bank lenders, fintech, and the AI disruption. Should the cycle go south, it might also take some unsuspecting victims down with it, as the battle for yield intensifies across the industry.Quote: "You feel stupid when everyone’s coining money and everyone's great... it does feel really good," he declared during the company's annual investor update. "And then when I think about all the factors taking place, I take a deep breath and say, 'Watch out!' Unfortunately, we did see this in '05, '06, and '07—almost the same thing—the rising tide was lifting all boats, and everyone was making a lot of money. I see a couple of people doing some dumb things. They are just doing dumb things to create net interest income.""There's always a surprise in a credit cycle. The surprise has often been which industry [is hit hardest]. You didn't expect utilities and phone companies in '08, '09, and this time around, it might be software because of AI. There will be a cycle one day... I don't know what confluence of events will cause that cycle. My anxiety is high over it. I'm not assuaged by the fact that asset prices are high. In fact, I think that adds to the risk."Track record: As the CEO of the largest bank in the U.S. and at the helm for more than two decades, Dimon definitely has insight into the latest happenings on Wall Street and the economy. His conservative risk management and approach to strong capital positioned the bank ahead of its peers in the 2008 financial crisis, and he has made bold calls like disputing the "transitory" inflation myth in the aftermath of the COVID pandemic and warning that the Fed would have to aggressively raise interest rates. Some of his other forecasts have not panned out, like the "economic hurricane" of 2022 and the "pending recession" of 2023, as well as his stance on Bitcoin that went from being dubbed a "fraud" and "pet rock" to offering crypto services to JPMorgan's (JPM) clients. (2 comments) Here's the latest Seeking Alpha analysis Best Dip Buys With 'Year Of The Fire Horse' Potential Golden Buying Opportunity: 8-9% Yields The Market Is Completely IgnoringHarness The Power Of Quiet Compounding With These Dividends Aristocrats: Yields +6%Micron: Melt-Up Looks Late Cycle; Don't Chase This Rally Any FurtherThis Is What A Worst-Case Bear Market Looks Like What else is happening... WSB survey results: White House policy has highest portfolio influence.IBM (IBM) falls most since 2000 after Anthropic COBOL AI claims.FedEx (FDX) sues Trump administration for full refund of IEEPA tariffs.PayPal (PYPL) jumps after stock slump said to spark buyers' interest.Supreme Court hears Exxon Mobil's (XOM) $1B Cuba assets claim.China tightens export controls on Japanese firms over remilitarization.Gold climbs above $5,200 as Trump's tariff defiance sparks uncertainty.Apple (AAPL) confident in Mac Mini Houston plans over Mac Pro Austin.Hims & Hers (HIMS) falls after disclosing SEC probe of copycat GLP-1s.Fed moves to formalize removal of reputation risk in bank oversight. Today's Markets In Asia, Japan +0.9%. Hong Kong -1.8%. China +0.9%. India -1.2%.In Europe, at midday, London -0.1%. Paris +0.1%. Frankfurt flat.Futures at 6:30, Dow +0.3%. S&P +0.2%. Nasdaq +0.2%. Crude flat at $66.30. Gold -0.6% to $5,191.90. Bitcoin -4.8% to $63,089.Ten-year Treasury Yield unchanged at 4.04%.

On The Calendar Companies reporting today include Realty Income (O) and Home Depot (HD). See the full earnings calendar on Seeking Alpha, as well as today's economic calendar. This article was written byWall Street Breakfast5.74M FollowersSubscribeWall Street Breakfast, Seeking Alpha's flagship daily business newsletter, is a one-page summary that gives you a rapid overview of the day's key financial news. It is designed for easy readability on the site or by email (including mobile devices) and is published before 7:30 AM ET every market day.

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