‘My anxiety is high’: Jamie Dimon sounds alarm on soaring AI valuation. How investors can protect their portfolios from a supercycle collapse

“My own view is people are getting a little comfortable that this is real, these high asset prices and high volumes, and that we won’t have any problems,” Dimon said during the bank’s update event in New York (1).

Tech giants are collectively planning to invest $1.7 trillion to build data centers worldwide by 2030 (2). To put this into perspective, the recent AI push is more expensive than the 1960s moon landing and the decades-long construction and development of the U.S. interstate highway system, which ended in the 70s (3).

Even more worrying? Tech giants seem to be investing heavily in each other’s operations, which has sent share prices surging through the roof over the past few years — fueling concerns about an AI bubble.

But it’s not just personalities like Dimon that are raising red flags. The Buffett indicator — a market valuation metric that compares the total market capitalization of the U.S. stock market to GDP — hit 220% in February, the highest level on record (4).

“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,” Dimon said.

But what does this mean for you?

When Wall Street veterans ring warning bells, evaluating and rebalancing your portfolio to withstand shocks may be more important than ever.

Is the supercycle artificial?

AI enthusiasts have rejoiced over the massive investments in technology, touting that they will lead to a “supercycle” that will disrupt all businesses (5).

But if you take a closer look, only a handful of companies appear to be involved in this cycle, and they are heavily investing in each other.

OpenAI has reportedly taken a 10% stake in AMD. NVIDIA is investing $100 billion in OpenAI. Microsoft owns a big chunk of OpenAI — while also spending heavily with CoreWeave, an AI cloud company backed by NVIDIA. Meanwhile, Microsoft accounted for almost one-fifth of NVIDIA’s annualized revenue as of its fiscal fourth quarter in 2025 (6).

While shares of these companies have soared to new levels, Dimon says it reminds him of the years leading up to the 2008 crisis.

“There’s always a surprise in a credit cycle,” Dimon said.

He noted that the trick is identifying which industries will be hit the hardest, adding that this time around it might be software companies instead of phone and utility services like in ‘08 and ’09.

From this comes another threat: mass layoffs.

Do white-collar workers dream of electric sheep?

A March 2 Substack post from Citrini Research, an independent investment research firm, laid out hypothetical scenarios where AI advances could render some white-collar roles obsolete. As the post gained traction, the Dow plunged by 800 points (7).

But Citrini’s hypotheticals might be rapidly approaching reality.

In late February, former Twitter CEO Jack Dorsey’s Block — formerly known as Square — laid off 40% of its workforce, claiming, “A significantly smaller team, using the tools we’re building, can do more and do it better.”

So it’s not surprising that Dimon’s anxious.

“When I think about all the factors taking place,” Dimon said. “I take a deep breath and say watch out.”

Dimon’s fears aren’t isolated. Economists and policymakers have also flagged risks tied to the rapid rise in AI-related investments and market concentration, noting that a correction in technology stocks could ripple across the broader economy.

“Bubbles obviously are never very easy to identify, but we can see there are a few potential symptoms of a bubble in the current situation,” said Adam Slater, lead economist at Oxford Economics (8).

With risks mounting — both geopolitical and AI-based — it might be worth hedging your portfolio in the event of a downturn.

Consult an expert

Before you think about changing your investment strategy, it’s important to understand where you currently stand. And a professional can help with that.

You can find a vetted FINRA/SEC-registered expert near you for free through Advisor.com.

All you have to do is answer a few basic questions about yourself and your financial situation, and Advisor.com will match you with a vetted expert suited to your needs.

The best part? Advisor.com’s roster consists of fully human fiduciaries, who are legally obligated to act in your best interests. All you have to do is enter some basic information, like your ZIP code, and a bit about your financial goals.

Still, hiring a financial advisor can be a lifelong commitment — especially if they know their stuff. That’s why Advisor.com lets you set up a free, no-obligation consultation with your match to see whether they’re the right fit for you.

Hedge your portfolio with precious metals

If U.S. markets experience a digital bubble burst, it could pay to divert at least some of your wealth towards something real — like gold. The current economic backdrop has led even skeptics like Dimon to acknowledge gold’s diversification capabilities.

Dimon has long stated that he isn’t a “gold buyer” because it “costs 4% to own it (9).”

But at the Forbes Most Powerful Women conference last October, he noted: “This is one of the few times in my life, it’s semi-rational to have some in your portfolio.”

Historically, gold has often been viewed as a hedge against inflation and market volatility. At times, it has held its value better than equities during certain economic downturns.

“It could easily go to $5,000 or $10,000 in environments like this,” Dimon added.

Part of his prediction has already moved closer to reality. The precious yellow metal hit an all-time high of over $5,000 earlier in January, and is up over 75% over the past year (10).

But the key isn’t betting everything on gold — it’s diversification. Even a modest allocation can help cushion portfolios during periods of market volatility.

Open a precious metals IRA

If you want to get in on the gold rush, you could consider opening a gold IRA with the help of Thor Metals.

By diversifying a portion of your existing holdings into a precious metals IRA — which allows you to hold physical gold and silver bars or coins — you can combine the protective benefits of precious metals with the tax perks you already enjoy within an IRA.

You can also book a free private consultation with specialists at Thor Metals to understand how this type of investment could help support your portfolio in times of volatility.

Even better, you can get up to $20,000 worth of precious metals when you make a qualifying purchase — plus a free wealth preservation guide on sign up.

Another option you may want to consider is the American Gold & Silver Group, which can help you transition a portion of your retirement portfolio into physical assets — tax-free and penalty-free.

They offer free insured shipping and free storage for up to five years. And if you make a qualifying purchase, you could also receive up to $25,000 in free silver.

To learn more about how investing in precious metals can help shield your hard-earned savings from economic volatility, you can download their free precious metals information guide.

Diversify with real estate

Real estate has historically acted as both an income generator and a diversifier from traditional stock and bond portfolios, which rely on a 60/40 split.

But investors often shy away from purchasing properties outright for investment purposes, and with good reason. You’ll have to juggle mortgage and insurance, maintenance expenses, as well as deal with finding and managing tenants.

Become a landlord without the responsibilities

That said, there are now options for tapping into this market — and without the commitment of a 30-year mortgage.