JPMorgan’s Dimon Says ‘This Boom Could Easily Run Into 2023’
(April 7, 2021, 6:10 PM GMT+8Updated on April 7, 2021, 9:39 PM GMT+8)
Jamie Dimon said he’s optimistic the pandemic will end with a U.S. economic rebound that could last at least two years.
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,” the JPMorgan Chase & Co. chief executive officer said Wednesday in his annual letter to shareholders. “This boom could easily run into 2023.”
Unprecedented federal rescue programs have blunted unemployment and averted further economic deterioration, according to Dimon, who said banks entered the crisis strong and able to help communities weather the storm. While lenders also benefited from U.S. stimulus, they built up buffers against future loan losses and performed well in stress tests, he said.
Dimon also pointed to U.S. consumers, who used stimulus checks to reduce debt to the lowest level in 40 years and stashed them in savings, giving them -- like corporations -- an “extraordinary” amount of spending power once lockdowns end. The latest round of quantitative easing measures will have created more than $3 trillion in deposits at U.S. banks, a portion of which can be lent out, he said.
It could all add up to a Goldilocks moment, according to Dimon, where growth is fast and sustained while inflation ticks up gently. Threats to that outcome include virus variants and a rapid or sustained jump in inflation that prompts rates to rise sooner.
At 65, Dimon is the most prominent executive in global banking, serving as a spokesman for the industry while leading a titan of both Wall Street and consumer lending. He’s run the company since the end of 2005, and is the only CEO still at the helm after steering a major bank through the financial crisis.
The 65-page letter (plus a page of footnotes) is Dimon’s longest yet, following last year’s abbreviated one that came less than a week after he returned to work from emergency heart surgery. As always, it is wide-ranging, touching on topics from financial regulation to China to inequality and institutional racism.
One of the worst performing large cap years. Low Covid resilience score and political risks remain as negative catalyst for Bursa blue chips. Hopefully the recent investment in a plant-based meat manufacturing technology in Shah Alam can turn out to be a major growth story for Nestle Malaysia. The world desperately needs a solution to reduce meat consumption and large companies like Beyond Meat's recent strategic global agreement with McDonald's is likely to usher in a new era of food technology.
Regulatory risks for plant-based meat technology could potentially disrupt the industry. However, if the investment pays off, it could be a very sustainable revenue stream for the company and serve as a major growth story for such a low growth company.
NESTLE (MALAYSIA) BERHAD VS UNILEVER INDONESIA TBK (UNVR)
*all price are quoted in Malaysia ringgit (MYR) for easier comparison.
NESTLE (M) BERHAD ~VS ~ UNILEVER INDONESIA TBK TICKER :- 4707 ~ UNVR MARKET CAPITAL :- 31.587 Billion ~45.684 Billion P/E RATIO :- 55.36 ~23.91 PRICE-TO-SALES (P/S) RATIO :- 5.65 ~ 3.81 PRICE-TO-BOOK (P/B) RATIO :- 48.11 ~39.25 Total Debt to Equity :- 64.97%~ 117.8% DIVIDEND YIELD :- 1.72% ~4.53% Return on Equity (5 YEAR AVERAGE) :- 97.8% ~135.87% Net Profit margin (5 YEAR AVERAGE) 1 :- 1.82% ~17.72% SHARE OUTSTANDING :- 234,500,000 ~38,150,000,000 LAST PRICE @30/08/2021 :- RM134.70 ~RM1.20 (4130IDR)
*apart from the financial ratio above, both company records a consistent n stagnant revenue n profit for the past few years with decent growth. Other then tat both company sells a similar product with superbrand fnb product except unilever slightly diversified which sells personal n homecare product.
*in my point of view both company is a good n financially stable, the only matter that concern me is about nestle malaysia valuation when u compare with other similar international brand especially their book value. yes they carry a strong brand along them but dont u guys think its damn overvalue to buy at current price?
* on the other hand unilever indonesia where currently selling 60% @ discount where it share a similar situation with nestle previously n now going after its fair value.
* from both company which 1 will u choose ? *this is just my personal view, i might wrong pls do correct if i does tq.
Why nowadays so many fxxker iddiots keep on spamming all the forum?
Why 3iii administrator never take action to suspend this fxxker iddiot account?
Posted by oskchoon > Nov 2, 2021 8:35 PM | Report Abuse
This September quarter Hartalega EPS is only 27 sens and it is paying 35 sens dividend , did you find any tech company paying like this, only Glove counters dividend yields are the highest compared with other industries even better than banks, Plantation, Banks or tech companies..
KUALA LUMPUR (April 26): Nestlé (Malaysia) Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) grew 17.14% to RM205.18 million from RM175.16 million a year earlier underpinned by stronger sales, coupled with lower Covid-19 related expenses.
The improved results were achieved despite the impact of increased commodity prices, as well as the impact of Cukai Makmur (the prosperity tax), said Nestlé in a bourse filing on Tuesday (April 26).
Earnings per share rose to 87.5 sen, compared with 74.7 sen previously.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....