Jamie Dimon expounds on his earlier potential call of the decade of a 7% 10-year rate. He is also urging at the front end for, “clients to be prepared for that kind of stress.” We also need to stop thinking of China as a 10 foot giant.
Mr. Dimon also thinks the main question with China isn’t the real estate sector but the seriousness of having, “a European democratic nation invaded under the threat of nuclear blackmail…. It’s gonna affect all of our relationships…. And India is going its own way.” There will be, “a change in flows over time.” The geopolitical situation concerns him most for the free democratic world.
Mr. Dimon generally agrees with Larry Summers that higher-for-longer is not necessarily antithetical to growth. In a sense, this is good, because there is a bigger fight for capital, and there are many good ways to deploy it right now.
And “Government spending is inflationary,” so another rate hike is more likely than not.