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Macro

Dimon Touts Booming US Economy, Tech Leads with Biden's Boost

Jamie Dimon hails booming US economy; US firms dominate global market valuations, buoyed by Bidenomics and tech sector growth.

By Athena Xu

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5/2, 05:14 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Apple Inc.
Alphabet Inc.
JP Morgan Chase & Co.
Microsoft Corporation
Micron Technology, Inc.
NVIDIA Corporation
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Key Takeaway

  • Jamie Dimon describes the US economy as "booming," with low unemployment and strong consumer wealth, reflecting high confidence.
  • US stocks, especially in technology, command a significant premium, evidencing investor faith in American exceptionalism and Biden's economic policies.
  • The Chips and Science Act propels US semiconductor industry growth, with Micron Technology Inc. receiving up to $13.6 billion for new factories.

US Economy: A Booming Landscape

Jamie Dimon, the chairman and CEO of JPMorgan Chase & Co., recently described the US economy as "booming," a sentiment not lightly expressed given his nearly two decades at the helm of the world's largest bank. This perspective is rooted in the sustained low unemployment rates, under 4% for several years, a phenomenon not seen since Dimon's elementary school days. The American consumer's financial health has notably improved, with low debt service ratios, increased home prices, and rising stock values. This robust economic condition is a stark contrast to the pre-Covid-19 era of low growth.

American Exceptionalism in the Global Market

The valuation of US-based firms, including tech giants like Microsoft Corp., Apple Inc., Nvidia Corp., and Alphabet Inc., has significantly outpaced their global counterparts. This surge has led to 17 US-based companies ranking among the 20 most valuable globally, a testament to the exceptional performance of corporate America. The confidence in the US market is further highlighted by the record 26% average premium investors have been willing to pay for American stocks since 2021, more than double the premium in 2017. The US tech sector, representing a record 85% of the global tech industry's market value, underscores the world's high regard for American innovation.

Bidenomics and Investor Confidence

The stock market's buoyancy reflects investor confidence in President Joe Biden's economic policies, collectively known as Bidenomics. Key legislative achievements under Biden, such as the American Rescue Plan Act, the Infrastructure Investment and Jobs Act, Inflation Reduction Act, and Chips and Science Act, are perceived as catalysts for economic growth. The Chips and Science Act, in particular, has spurred nearly $150 billion in investments for US semiconductor research, development, and production, promising industry-leading sales growth for the sector.

Management Quotes

  • Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co.:

    "Basically, it's booming... If you look at the economy since then, it's been booming. Unemployment hit an all-time low; it's been under 4% now for the better part of two or three years." "The American consumer, even if we go into a recession, is much wealthier than before... Debt service ratios are very low...their home prices are up; their stock prices are up." "Technology is the thing that changes the world... AI will be one of those big ones."