As American stock exchanges celebrated a 15% bounce last month in the S&P 500 and appear to shrug off April’s pullback, JPMorgan CEO Jamie Dimon turned out to be the party killer.

Addressing JPMorgan Chase’s annual investor day, Dimon cautioned that Wall Street is potentially sleepwalking into a minefield of threats, from swelling U.S. deficits, uncompromising tariffs and geopolitical tensions.

So, in a climate where the atmosphere is strangely bright with storm clouds on the horizon, how do investors protect themselves against the whiplash of complacency being replaced with anarchy?

Try these ETF plays, because sometimes the best defense is a diversified offense.

Short-Term Treasury and Inflation-Protected ETFs

If you're in the “cautious optimism with a side of realism” camp, short-term government bond ETFs are worth a look. They offer lower interest rate risk, and with the Fed playing hard to get on rate cuts, yields are holding up nicely.

Vanguard Short-Term Treasury ETF VGSH: Yielding a healthy 4.18%, it's a classic go-to for those who'd rather not roll the dice.

Vanguard Short-Term Inflation-Protected Securities ETF VTIP: With its 2.78% yield and inherent inflation protection, it’s like having a financial raincoat on hand when the storm clouds gather.

Low-Beta ETFs

Dimon’s words hint that volatility may come back with a vengeance — and low-volatility or low-beta ETFs are designed for just that type of turbulence. They tend to prefer stocks with benign price action and often bias towards defensive sectors.

Vanguard Total Bond Market Index Fund ETF BND: The fund offers broad exposure to the U.S. bond market, covering government, corporate, and mortgage-backed securities. With a low beta of 0.25, BND offers stability while still delivering a modest returns.

Dividend-Growth ETFs

Cash is king in uncertain times, particularly recurring, growing cash flows. Dividend-growth ETFs target firms with a long history of dividend hikes, a quality indicator in the face of economic uncertainty.

SPDR S&P Dividend ETF SDY: Tracks U.S. firms with more than 20 years of history of dividend growth. Yield: 2.49%.

What Did Dimon Say?

“We have huge deficits; we have what I consider almost complacent central banks,” he said, castigating with practiced hawkishness. “You all think they can manage all this. I don't think they can.”

Dimon’s unsparing macroeconomic assessment also put a spotlight on inflation and stagflation risks, and warned S&P 500 earnings estimates to soon drop from 12% to flatline levels. If that happens, valuations could follow.

His comments are adding to a chorus of concern. Citigroup CEO Jane Fraser also voiced uncertainty recently in a blog post, and Walmart CFO John David Rainey heralded oncoming price increases due to increasing tariffs, potentially in the form of “double-digit” rises.

If consumer leviathans are sealing up the hatches, investors might consider rethinking those champagne-stock valuations.

The Bottom Line

Dimon’s fears, supported by weakening earnings forecasts, sticky tariffs and geopolitical uncertainty, are not to be underestimated.

ETF investors should note that this isn't about fleeing the market, but rather about suiting up with armor tailored for the battlefield ahead. Whether it's the cushion of short-term Treasuries, the stability of low-volatility plays or the reliability of dividend growers, these ETF strategies offer ballast when Wall Street's mood shifts from carefree to cautious.

Because when Dimon raises an eyebrow, it’s rarely without reason.

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