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“Hurricane” Dimon is Late and Without a Plan

Last week, JP Morgan Chase CEO, Jamie Dimon, said that the economy is “sunny” at the moment but predicted there’s a storm coming.  He just doesn’t know if it will be a big storm or a small one. He advised that investors “brace themselves” for the coming hurricane while noting he didn’t know if it would be a minor storm, a Superstorm Sandy, or a Hurricane Andrew.  He noted rising energy costs, higher commodity costs, and increasing interest rates as potential problems which could cause a recession.  He also cited the uncertainty caused by war in Ukraine.

If Mr. Dimon worked for the National Oceanic and Atmospheric Administration (NOAA), his projection would be tantamount to “the hurricane will hit sometime between today and next Friday, and land somewhere between Boston and Miami.  Also, it might just be a minor rainstorm.”

Dimon did mention that JP Morgan Chase has a strong balance sheet so they’ll be fine.  A smart client of Deep Knowledge Investing pointed out that while Dimon predicted potential destruction, he gave no guidance to investors regarding what they should do to secure their financial fortunes.

Dimon’s firm employs hundreds of analysts, economists, and money managers.  For all intents and purposes, they have an unlimited research budget.  Our question is how are they just figuring this out now?  Our best guess is any firm that large with important government contacts prefers not to see anything that would appear negative.

Deep Knowledge Investing has been writing clearly about this issue for 7 months.

November 2021

Deep Knowledge Investing warned investors about the dangers of coming inflation and gave subscribers a plan to deal with the problem.  At the time, JP Morgan Chase thought the first rate hike would take place in late 2022 and that inflation would be transitory.

https://deepknowledgeinvesting.com/a-primer-on-inflation-how-to-hedge/

January 2022

We warned investors about the dangers of Fed rate increases and gave subscribers a plan to deal with the problem.

https://deepknowledgeinvesting.com/the-depth-report-a-second-update-on-the-portfolio-the-difference-between-hedging-for-inflation-and-for-higher-interest-rates/

February 2022

DKI wrote publicly that the US had already entered Stagflation and talked about it in a webinar with James Davolos of Horizon Kinetics.

https://www.theepochtimes.com/are-we-heading-for-stagflation_4262602.html

https://deepknowledgeinvesting.com/inflation-interest-rates-and-hedging/

February 2022

We spoke with Deep Knowledge Investing Advisor, Howard Freedland, and told homeowners that higher interest rates would reduce home prices, and then put that in writing as well.

https://deepknowledgeinvesting.com/inflation-and-housing-prices/

https://www.theepochtimes.com/how-inflation-and-interest-rates-will-affect-the-value-of-your-home_4277925.html

We’ve been calling out the US Bureau of Labor Statistics for a misleading and inaccurate Consumer Price Index:

January

https://www.theepochtimes.com/how-inflation-is-being-understated-and-why-whats-coming-is-worse-than-expected_4220531.html

March

https://deepknowledgeinvesting.com/more-nonsense-from-the-u-s-bureau-of-labor-statistics-cpi/

April…

https://deepknowledgeinvesting.com/the-depth-report-the-new-inflation-number-is-huge-and-is-understated/

and May 2022

https://deepknowledgeinvesting.com/new-cpi-now-with-more-nonsense/

May 2022

DKI partnered with ArcanX Portfolio Manager and Deep Knowledge Investing Advisor, Raji Khabbaz, to tell investors which oil stocks we were buying and why.

https://deepknowledgeinvesting.com/oil-prices-are-up-what-do-we-buy-now/

For the past 7 months, we’ve made specific predictions, explained our thinking and guided subscribers on how we been making money from the “hurricane” Dimon just “predicted”.  Dozens of additional posts are available here

https://deepknowledgeinvesting.com/were-getting-questions-about-the-market-short/

https://deepknowledgeinvesting.com/category/market-commentary/

 

Someone once challenged me on how Deep Knowledge Investing would outperform his sell-side firm with all their industry specialists who had access to company CEOs.  I replied that the “C-Suite” access he thought was an asset was actually a liability.  Analysts who depend on executive access to do their jobs would lose that access by writing something that a CEO didn’t like.  At DKI, we’re willing to write something that upsets company executives if it helps our clients make money.  We’re independent and conflict-free.

 

This is why we continue to emphasize the value of independent research.  Reading JP Morgan research is the equivalent of checking the headlines in the Wall Street Journal.  It’s great to find out what everyone thinks happened yesterday.  JP Morgan is starting to figure out this week what we said would happen 7 months ago.  DKI exists to help you understand what’s going to happen in a complicated and challenging market, and to communicate to subscribers how to position themselves to make money from that.

If you want to be months ahead of the mainstream media and standard sell-side analysis, you can subscribe here:  https://deepknowledgeinvesting.com/subscribe-now/

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