Dimon of JPM highlights global financial concerns👀

"The may be the most dangerous time the world has seen in decades."

  - Jamie Dimon, Friday October 13, 2023

We began the Friday NY session with the above premonition from JPM's Jamie Dimon despite reporting an earnings beat, as the veteran CEO pointed to:

1.dwindling consumer cash buffers

2.persistently tight labour markets

3.elevated inflation pressures extreme levels of govt debt

4.largest peacetime fiscal deficits

5.unknown long-term impacts of QT

6.supply-chain impacts from geopolitical tension

as a long-list of reasons of why he believes that the world is heading into choppy waters in the foreseeable future.

Markets ended the week in the same manner we began, worrying about the kinetic conflicts between Israel and Hamas, which has had little impact on asset prices so far, but is certainly in danger of taking a turn for the worse on escalating urban warfare. Gold surged by 3.5% on Friday with a corresponding spike in vol to 5 month highs, oil spiked by 6%, treasury yields fell by ~6bp, and US stocks closed around 0.5-1% weaker despite a promising start to the earnings season.

#JPM #GeopoliticalTension #macro #Israel #Hamas