Jamie Dimon inks new shareholder letter, outlines top concerns

In his latest shareholder letter, JPMorgan (JPM) Chase CEO Jamie Dimon has highlighted three key concerns: interest rate hikes in the US economy, risks posed by artificial intelligence (AI), and growing federal debt levels.

Yahoo Finance's Madison Mills breaks down the details.

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Editor's note: This article was written by Angel Smith

Video transcript

SEANA SMITH: --the start the day with those comments from JPMorgan is CEO Jamie Dimon and is the latest letter here to shareholders. The CEO covering a wide range of topics here in his 61 page letter, including the possibility of higher for longer rates. AI and the government deficit, this of course, is ahead of the company's earnings results on Friday.

And Maddie, when you talk about the importance of this letter, obviously, many shareholders, investors really parse through this shareholder letter just in terms of getting a better sense of how Jamie Dimon actually views, not only the market right now, but really the US economy as well as the global economy.

And what stuck out to me in this shareholder letter is the fact that he started all of this talking about AI, and the significant impact he sees AI having not only on companies here in the US and globally speaking, but really what it means for the human race here in the future as well.

MADISON MILLS: He really zeroed in on that. And it's not too surprising, because he had teased out previously that he thinks AI could lead to 4 and 1/2 day workweek. So love to see that from Jamie Dimon. I do want to apologize for what I said in my earlier hit. I was saying that Jamie Dimon was taking on the Fed chair role in this letter by saying that rates could go as high as 8%.

I no longer agree with that having read through more of the letter. I think this is more of a risk manager's take on the market. He's saying that JP Morgan is positioned well whether or not rates go down to 2% or 8%, and that makes sense given where this bank has been historically.

They became the biggest bank back in 2011. They have the highest assets under management compared with all of the major banks, really important context there heading into Friday when they get their earnings print out. So yes, he's saying that we have all these risks but at the same time, they're probably going to have a banner earnings print coming out on Friday.

So more evidence that he is handling that risk well.

SEANA SMITH: He is, certainly. And also what caught my attention was what he had to say about the economy's soft landing and the odds that we could see a soft landing and really pulling directly from the shareholder letter. He's saying that the markets seem to be pricing in-- pricing in a soft landing at about 70% to 80% chance modest growth along with declining inflation and interest rates.

He actually believes that the odds are a lot lower than that. So certainly some interesting points made as always in this annual letter to shareholders from Dimon.