JP Morgan (JPM) released its quarterly earnings yesterday beating The Street estimates.
During the earnings call, JPM Chief Executive Officer Jamie Dimon commented that, “the consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels.” He also indicated that economic growth appears to be in slowing and U.S. – China tensions continue to be a drag on growth. (https://bit.ly/2ML9qO6)
CEO Dimon’s positive view of the U.S. economy and consumer stands in sharp contrast to the prevailing mood on both Wall Street and Main Street regarding the immediate future and direction of the U.S. economy. Many individuals in the financial industry and also retail investors are skittish and fleeing from growth to safety in their investment portfolios.
The proverbial elephant in the room is whether the economy is headed into a recession the business cycle that is long in the tooth. According to CEO Dimon, there will be a recession sometime in the the future, but probably not in calendar year 2020 or the next six to eighteen months.