JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon recently released his annual letter to shareholders, a piece of literature widely read by the investing community. The 66-page, 35,000-word letter discussed a broad variety of events, topics, and policies, ranging from the coronavirus pandemic to banking regulation to what to expect from the U.S. economy.
Having now successfully steered JPMorgan Chase -- America's largest bank by assets -- through two recessions, Dimon is viewed as a leader in the banking and finance communities. Here are five important things Dimon said in his letter pertaining to banking and the economy.
1. The U.S. economy will likely boom
Like other economists and the Federal Reserve, Dimon expects the U.S. economy to surge as the coronavirus pandemic winds down. “I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE [quantitative easing], a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,“ he wrote.
While the length of the boom can't be known at this time, Dimon said it could easily extend into 2023. He also said that a multiyear booming economy could justify current high equity valuations, with investors potentially pricing in big economic growth and excess liquidity finding its way into the market.
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