Chaos of Chase Jamie Dimon says the markets are too compliant

JPMORGAN CHASE CEO Jamie Dimon he said on Monday markets and the central bankers underestimate the risks created by Record US deficit, rates and international tensions.

Dimon, CEO Veterano and president of the largest American bank by activity, explained his world view during the annual meeting of his bank investors in New York. He said he believes that the risks of greater inflation and even stagflation are not adequately represented by the values ​​of the share market, which have staged a return Low in April.

“We have enormous deficits; we have what I consider almost complacent central banks,” said Dimon. “Everyone thinks that they can manage all this. I don’t think they can,” he said.

“My opinion is that people feel quite well because you have not seen effective rates,” said Dimon. “The market decreased by 10%, [it’s] Back up of 10%. It is an extraordinary amount of complacency “.

Dimon’s comments follow the Moody evaluation agency downgrade On Friday the US credit rating for concerns about the growing government debt burden. The markets have been mounted in recent months for the concerns that the president Donald TrumpCommercial policies will increase inflation and slow down the largest economy in the world.

Dimon said Monday to believe that Wall Street profits estimates S & P 500 The companies, which have already decreased in the first weeks of Trump’s commercial policies, will fall further while companies pull or more a lower guide between uncertainty.

In six months, these projections will drop to 0% profit growth after the start of the year about 12%, said Dimon. If this happens, the prices of the stocks will probably decrease.

“I think the estimates of profits will decrease, which means that the Pe will go down,” said Dimon, referring to the price / profit ratio closely drawn by analysts of the share market.

The chances of stagflation“That it is basically a recession with inflation”, are about twice as much as the market thinks, added Dimon.

Separately, one of the best Dimon deputies said that corporate customers are still in “Wait-and-See” mode when it comes to acquisitions and other business.

Investment banking revenues are guided due to a decrease in the percentage of “half teenagers” in the second quarter than the farthest period, while the commercial revenues were higher than a percentage of a “medium-high” percentage, said Troy Rohrbaugh, co-head of the commercial bank and investment of the company.

On the always present question of the temporal sequence of Dimon to deliver the reins of the CEO to one of his deputy, Dimon said that nothing has changed from his guide last yearWhen he said he would probably remain for less than five years more.

“If I’m here for another four years, and maybe two more” as an executive president, Dimon said, “it’s a long time”.

Of all the executive presentations provided on Monday, the consumer bank leader Marianne Lake had time to speak longer at an entire hour. It is considered one of the best successor candidates, especially after Chief Operating Officer Jennifer Piepszak He said he wouldn’t look for the best job.