JPMorgan Chase CEO Jamie Dimon feels pretty sunny about the economy
The U.S. economy is healthy — and is going to remain healthy for decades to come. So says JPMorgan Chase CEO Jamie Dimon in his annual shareholder letter, released Tuesday morning.
Why it matters: Dimon's sunny outlook stands in stark contrast to his dark warnings 10 months ago, when he forecast an impending "hurricane."
The big picture: Market volatility notwithstanding, writes Dimon, consumers are spending 23% more than they were pre-COVID, and are sitting on $1.2 trillion of “excess cash” in their checking accounts. Other positives he cites include:
- "Extremely low" unemployment.
- Rising wages, "particularly at the low end."
- "10 years of home and stock price appreciation."
Between the lines: "Businesses are pretty healthy and credit losses are extremely low," says Dimon, the CEO of America's largest bank.
- The hurricane he talked of last year now appears to have been downgraded to "storm clouds," which may "peacefully and painlessly dissipate" — although of course, Dimon is at pains to say he's fully prepared for a bad outcome.
What he's saying: “When one talks about risk for too long, it begins to cloud your judgment. Looking ahead, the positives are huge," writes Dimon.
- "However events play out it, is likely that 20 years from now, America’s GDP will be more than twice the size it is today.”
The bottom line: Dimon is betting on America. "My friend Warren Buffett points out that his company’s success is predicated upon the extraordinary conditions our country creates," he says.
- "He is right to say to his shareholders that when they see the American flag, they all should say thank you. We should, too."