JP Morgan CEO Jamie Dimon warned investors that trouble could lie ahead. In his note in the earnings report, he said:
- “Many economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces,”
- “First, the global landscape is unsettling — terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue. And finally, we have never truly experienced the full effect of quantitative tightening on this scale.
- We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients,” he said.
Dimon has been cautionary. So the comments are not surprising. IN the banking environment, the CEO of the world largest bank you want to be more cautionary. However, he also has his fingers on the pulse of the economy, so it may not all be “crying wolf”.
The geopolitical risk is playing out today. Bloomberg is reporting:
- Israel is bracing for possible attack from Iran either directly or via its proxies, with drones and missiles on government targets within days
- One scenario is an attack on Israel from Iranian soil, which would be unprecedented
Israeli TV reports the US warship with defense capabilities has been parked off the coast of Israel.
