To say that we are living in odd times would be an understatement.
Not to mention that we still have an ongoing pandemic that’s yet to be effectively solved.
And to add to the confusion, we have the CEO of JPMorgan Chase sharing his own economic reflections in his annual letter to shareholders.
Jamie Dimon says that he was very bullish on the US economic recovery from the pandemic…
However, he was also highly concerned about the future of America.
To us, it sounds like a “short-term” bullish recovery, followed by more potential towards economic downfall.
“Unfortunately, the tragedies of this past year are only the tip of the iceberg — they merely expose enormous failures that have existed for decades and have been deeply damaging to America,” stated Dimon.
He followed by saying that the “nation was totally unprepared for the deadly pandemic.”
Comparing the recent pandemic to past times of wars and pandemics, Dimon said that we have always bounced back stronger as a nation.
“In each case, America’s might and resiliency strengthened our position in the world, particularly concerning our major international competitors; This time may be different.”
The JPMorgan Chase CEO believes that if our nation does not address and resolve our ongoing issues, countries like China may surpass us in prosperity and innovation.
Dimon believes that China sees us as falling behind in education, technology, infrastructure and that we are “torn and crippled by politics” as a nation.
“Unfortunately, recently, there is a lot of truth to this. Perhaps we were lulled into a false sense of security and complacency in the last two decades of the 20th century as we enjoyed relative peace in the world and a position of global dominance, validated by the fall of the Soviet Union.”
“Politics is increasingly divisive, and the government is increasingly dysfunctional, leading to a number of policies that simply don’t work.”
In the letter, the CEO suggested that many of America’s problems are self-inflicted and the result of extreme polarization and “broken policy.”
These are statements that most of us have known for quite some time.
The one positive takeaway from his letter? He feels the economy and markets could see a trend upwards until 2023.
But then what?
Are less than 24 more months of a “stable” economy good enough for you?