A $500 Billion Bet

This banking magnate has a hunch about inflation... [Wealthy Retirement]( SPONSORED [5G Triggers Feeding Frenzy!]( [5G Connection Investment]( Between them, Bill Gates, Jeff Bezos and Warren Buffett have invested $49.7 billion in 5G. These men have built their fortunes on their ability to profit from emerging trends. Do you seriously want to sit on the sidelines as 5G makes these rich men EVEN RICHER? [Watch this FREE 5G presentation now.]( [MARKET TRENDS]( Jamie Dimon's $500 Billion Bet on Rising Rates Jody Chudley, Contributing Analyst, The Oxford Club [Jody Chudley] America's smartest banker is hoarding cash... He is making a bet that interest rates are going to continue to rise. And his wager is massive... This man has purposefully assembled a $500 billion war chest, and he intends to deploy it into higher interest rates in the near future. I'm referring to JPMorgan Chase's (NYSE: [JPM]( CEO, Jamie Dimon. Dimon is widely viewed as the most important banker of his generation. While the [American banking system]( crumbled in 2008, Dimon positioned JPMorgan to stand tall with a fortress of a balance sheet. While the other big banks diluted their shareholders or failed completely, Dimon was able to swoop in and create value for JPMorgan shareholders. In 2008, JPMorgan acquired the giant investment bank Bear Stearns and the retail banking asset of Washington Mutual. The entire financial system needed JPMorgan to swallow these troubled banks in 2008. Thanks to Dimon, that is exactly what happened. That's why when Dimon speaks, people listen... And last week, Dimon told the world that he believed the [inflation uptick]( we are currently experiencing is not a short-term phenomenon. He sees inflation lasting and believes it will force the U.S. Federal Reserve to raise interest rates sooner rather than later. What's noteworthy is that Dimon is intentionally having JPMorgan take a hit to short-term earnings in order to have the company positioned to pounce when rates rise. Dimon is choosing to keep $500 billion of JPMorgan's cash liquid. He is saving that cash so that he can lock it in at higher interest rates down the road. In not having this cash invested now, he is forgoing short-term earnings. Dimon has lowered the banking juggernaut's 2021 net interest guidance by $2.5 billion specifically because he is willing to sit on some cash. SPONSORED [This Could Be Your DO-OVER on the Most Profitable Market Recovery of All Time...]( [Explosive_Recovery]( Did you have the courage to get in at the bottom of the real estate market in 2009? Most folks didn't... But today you have the chance at a DO-OVER. You could begin collecting real estate income for as little as $30 to start. [Click here to see this.]( The Words Were Barely Out of His Mouth... It didn't take Dimon long to be proven right... Just days after he predicted higher rates, the Federal Reserve revealed that it now expects to begin raising rates a full year earlier than it expected just three months ago. Instead of starting to raise rates in 2024, the Fed now believes it will begin in 2023. The Fed also significantly increased its guidance on core personal consumption expenditure inflation in 2021 to 3% from the 2.2% it had been projecting in March. That is a 36% increase in [inflation expectations]( which is a pretty big revision in just three months. A person has to wonder how much higher those revisions might be three months from now... Especially given that for months we have all been watching... - Rising energy prices - Rising food prices - Rising metals prices - Rising lumber prices - Rising shipping rates - Rising housing prices. In other words, inflation is everywhere... My take on all of this as an investor is pretty simple. I don't know how bad inflation might get or how high interest rates might go. But I do know one thing... There has never been a moment in my lifetime that the chances of inflation getting out of control were higher than they are today. The amount of money that central banks have created since the outbreak of the financial crisis in 2008 has put us in uncharted waters. And interest rates have been historically low for so long now... Central bank balance sheets were already historically stretched prior to COVID-19. And the response to the pandemic doubled down on the extreme easy-money policy. [The Federal Reserve's Balance Sheet]( The truth is that we are now all players in a massive central banking experiment. I don't know how this is going to play out. The central bankers don't know either - nobody does. The smartest man in the world of finance has a hunch, though. It is a hunch that he is willing to bet billions on. Given Dimon's track record and access to information, his guess is better than most. Good investing, Jody [Leave a Comment]( MORE FROM WEALTHY RETIREMENT [The Winning Lottery Ticket Everyone Wants]( [Brace Yourself for Higher Taxes]( [The Space Tourism Industry Is Ready for Takeoff]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThis%20banking%20magnate%20has%20a%20hunch%20about%20inflation...%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThis%20banking%20magnate%20has%20a%20hunch%20about%20inflation...%0D%0A%0D [Email Share]( [Push Alert]( SPONSORED [2021: The Year of Stockflation?]( [Money Flowing]( $11.2 TRILLION is about to unleash the biggest force to ever hit the market... But three new initial public offerings could reap the fastest gains... [Get the Details Here]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Wealthy Retirement]( | [Unsubscribe]( © 2021 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.