JPMorgan CEO Dimon says investors underestimating geopolitical risk, which may impact markets

JPMorgan Chase CEO Jamie Dimon said investors are underestimating the risks of geopolitical and fiscal threats to the global economy. 

In an interview with CNBC's Wilfred Frost, Dimon said that he wouldn't buy equities or long-dated U.S. Treasurys at their current prices. 

He pointed to wars in Ukraine and the Middle East, tensions between the U.S. and China, as well as rising military spending coupled with government deficits. 

In response to a question about markets underpricing the risk of a major economic shock, Dimon said it's hard to predict what will actually happen. He said that the global economy has become more resilient because of lower energy dependency than in previous decades, but he said that doesn't eliminate the possibility of a tipping point. 

Ongoing budget deficits in the U.S., Dimon said, will eventually force a reckoning, which could potentially drive interest rates higher.