by Wolf Richter
Wolf Street
“Rates have been extremely low for a long time — it’s hard to know how many investors and companies are truly prepared for a higher rate environment.”
Jamie Dimon, in his letter to JPMorgan Chase shareholders, was shaking up the internet a little this morning when he discussed the range of scenarios he envisioned for inflation over the longer term, and interest rates over the longer term – and the potential causes.
But he also cautioned about running a business based on “economic prognosticating.” He said: “Instead, we look at a range of potential outcomes for which we need to be prepared. Geopolitical and economic forces have an unpredictable timetable — they may unfold over months, or years, and are nearly impossible to put into a one-year forecast. They also have an unpredictable interplay: For example, the geopolitical situation may end up having virtually no effect on the world’s economy or it could potentially be its determinative factor.”