The bull market has room to run – even if rates spike: Jamie Dimon
Layfield Report CEO John Layfield on Berkshire Hathaway Chairman Warren Buffett and JPMorgan CEO Jamie Dimon calling for end to quarterly profit forecasts.
JPMorgan CEO Jamie Dimon remains upbeat about the U.S. economy and says that current bull market for stocks could go on for “two or three more years.”
However, he is telling investors to brace for even higher Treasury yields.
“You better be prepared to deal with rates 5% or higher — it’s a higher probability than most people think,” Dimon said speaking at an Aspen Institute gala, according to Bloomberg.
Higher rates mean higher borrowing costs, and that has the potential to decrease business investment and consumers’ purchase of big ticket items that are usually bought with a loan.
Still, Dimon also noted that economic and market conditions already support a 4% benchmark 10-year note yield, no matter what the bond market is saying.
The 10-year yield moved above 3% earlier this year, the first time in four years it has breached that threshold, unnerving investors.
The yield has since retreated below 3%.