No, not the Prince song. But Jamie “I’m the smartest guy in the room” Dimon and some pearls of wisdom.
Jamie Dimon believes cash is King. That’s why the JP Morgan Chase Captain has amassed a $500 billion dollar cache of greenbacks in anticipation of being able to invest at higher yields. For a bank to invest at higher rates, all they have to do is sit on cash. It’s called the float. When the Fed boosts rates, the amount of money banks earn on overnight deposits go up. Dimon is preparing for higher rates and less-than-transitory inflation.
The Federal Reserve announced yesterday that their stance on interest rates has changed too. Expect two rate hikes in 2023, if not sooner. This signals at the very least concern over the direction the economy is headed confirming Dimon’s and others’ suspicions.
So, the pearls of wisdom to be gleaned from these signals…start to turn the ship as soon as you see the iceberg. Start planning now to protect your principal from the erosive effects of higher prices for goods and services and inevitable government economic intervention.
A portfolio of Senior Life Settlements can help you shield your investments from market volatility and hedge against inflation. Above-market, absolute returns and a natural principal protection element is just the ticket to keep partying like it’s 1999.