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JPMorgan CEO Jamie Dimon told reporters on a post-earnings conference call that the market is “too happy” right now.
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He said investors underestimated the potential for negative economic outcomes.
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His comments came at a time when JPMorgan reported record first-quarter results.
JPMorgan Chief Executive Jamie Dimon said investors were underestimating the potential for an economic disaster, building on similar warnings he has made in recent days.
In a call with reporters on Friday, the prominent CEO characterized the market as “too happy” and said “the chances of a bad outcome are higher than people think.” .
Dimon acknowledged that the economy appears to be on track for now, buoyed by excess savings, low unemployment and a record stock market. But difficulties are starting to emerge among low-income earners, he said, and the bank points to the collapse of subprime auto loans.
According to Quartz, he pushed back on speculation about figures such as interest rates and yields, arguing that these estimates are often wrong.
“You have to ask the question, what happens if other things happen, like higher interest rates or a milder recession, that change all of these numbers?” he said. “I don’t think any of us would be surprised when that happens.”
These comments came on the same day as JPMorgan’s better-than-expected first-quarter earnings report, in which the Wall Street giant posted revenue of $41.9 billion, up 9% year over year. Earnings per share reached $4.44, beating AlphaSense’s consensus estimate of $4.14.
In a related press release, Dimon praised the bank’s strong quarterly performance but warned of “significant uncertainties,” including geopolitical tensions, inflationary pressures and the unknown effects of large-scale quantitative tightening. uttered.
Both the call and the press release echo the cautious sentiments expressed in Dimon’s letter to shareholders released just four days earlier, in which he wrote that the world is at its worst since World War II. He warned that we were entering “dangerous” times and disagreed with market opinion on the probability of a shareholder meeting. US soft landing.
JPMorgan Chief Financial Officer Jeremy Burnham echoed Dimon’s view on his own call with reporters Friday.
“The geopolitical and regulatory uncertainties in the economy that we have been talking about for some time remain significant,” he said, as reported by Quartz. “And we are focused on preparing ourselves to overcome these challenges and others that may arise.”
Read the original article on Business Insider
