Jamie Dimon says the stock market overreacted, no recession ahead

CNBC/Hugh Son/1-8-2019

“‘I think markets are overreacting to short-term sentiment around a whole bunch of complex issues,’ Dimon said in a Fox Business interview released Tuesday. He quickly added that the market moves were a ‘rational response’ to slower growth and the U.S.-China trade dispute.”

USAGOLD note:  We agree with Jamie Dimon on this.  The new normal reasserts itself.  And we do not believe that the complexities involved will suddenly become simpler and easier to understand anytime soon. We keep coming back to the way algo-trading amplifies whatever trends are at work in the financial markets and the fact that not even the best minds in the business, by their own admission, really understand their effects. For the ordinary investor, such understandings lead inevitably to precious metals ownership as a long-term hedge. The markets have simply become and will continue to be very volatile and unpredictable to the point that at some point they could be pushed over the ledge, i.e., what Ben Bernanke referred to last summer as a “Wile E. Coyote moment.”

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