Dear Reader,
First, I want to thank so many of you for your letters wishing us well through the hurricane. It really meant a lot to me.
Today, I want to talk about what the economy looks like to the man who sees everything before it happens…
I talk a lot about Jamie Dimon, Chairman and CEO of JPMorgan Chase, the largest bank in the country.
This is a serious man.
The great thing about people like him is, he’s old enough not to B.S. people.
I like that. And I feel the same way about myself.
You get to a certain age and you realize, I don’t have to impress.
I’m going to tell it like it is.
Like me or not, I’m okay with that.
Now, Jamie Dimon is someone you want to pay attention to. Because from where he sits, at the head of the largest bank in America, he sees everything before it happens.
He sees when consumers are late with credit card payments…
When car payments start slowing down…
When they’re pulling a lot of equity out of their homes.
So Friday, JPMorgan announced earnings. They came out a little better than expected.
And one of the things he said on his earnings call is, “conditions are treacherous, and getting worse.”
Now, he’s talking about geopolitics. And I totally agree.
When you look at the Middle East, that’s one thing…
But when you look at what’s happening around China and Japan…
You have China pushing planes over Japanese islands and over Taiwan.
This week the Taiwanese president made comments Beijing perceived as “independence-pushing” and China rattled the saber…
Basically said, if you think about any more independence we are coming in there.
Beijing put up a warning.
===Investor Warning===
Washington, Beijing to Announce Catastrophe
Saudi Arabia just ditched its 50-year agreement with the U.S. to sell oil in dollars…
Joining Brazil, Argentina and Iraq in dropping dollars for Chinese yuan.
EXPOSED: Why the Biden administration is hiding this news before the election… and why the market could tumble 50% when it leaks.
Get the shocking true story here.
===
Dimon also talked about the economy.
He expects high long-term inflation and says no matter what happens – inflation is here to stay.
We will see higher base rates because all these countries are militarizing.
As I’ve said here many times, the world is entering a new cycle of war. And you can see it happening.
When that much money gets funneled through bureaucracies it’s inefficient, which leads to inflation.
You also have a lot of countries putting up trade barriers.
Dimon warned of several critical issues threatening the U.S. economy, including our large fiscal deficits.
He’s worried.
I like to be cautiously optimistic, or as Dimon says, optimistically pessimistic.
I think that’s one of the benefits of having been around the block.
Think about your profession – if you do or did something for 20, 30, 40 years…
You do something for enough decades and you’ve just seen this play before.
I started to feel that way after two decades in this business. And now with three decades in this business I really feel that way.
The other thing we know about investing in the markets is, human nature doesn’t change.
People begin to engage in “magical thinking.”
They start to fantasize outcomes.
And that’s why I always talk about making sure we’re looking at objective facts based on historical measures of value.
So we don’t get caught up in over-euphoria or over-pessimism.
When I’ve seen a market be overly pessimistic, I’ve ALWAYS been a buyer.
When I’ve seen the market be overly optimistic, I’ve always been a seller.
That’s how you want to play this game.
Anyway, I just wanted to thank you again for the heartfelt letters and notes you all sent in.
It really mattered to us; it mattered to me.
Thank you for giving us a few minutes of your morning every day.
I am grateful and humbled to be on this journey with you.
“The Buck Stops Here,”
P.S. You know I’m always looking to make you profits – and we’ve had a tremendous year!
But most important of all to me, is to protect your money, and mine from potential threats.
And this is the biggest threat I see facing America right now. Please, don’t ignore this one.
