Be careful, there is too much optimism in the markets. Word of Jamie Dimon

A cautious pessimism hovers in the analysis of markets and the global economy by Jamie Dimon, at the helm of the US banking giant JP Morgan.
Speaking at the JPMorgan High Yield and Leveraged Finance Conference in Miami, the head of the largest U.S.
bank by assets said markets were probably not pricing in a strong enough probability that interest rates could stay higher for a longer period.
Furthermore, the emphasis on a soft landing in the US power has distanced the scenario of recession which, according to Dimon, is still probable.
“I am cautious about everything,” said the CEO and explained the reasons that make him very cautious about what can still happen.
All Reasons for Caution in the Markets By Jamie Dimon Dimon noted that “there are things out there that are quite concerning” and disagreed with the high level of probability that the US economy will not experience a recession.
“The market is pricing in a soft landing.
It could very well happen,” he told CNBC's Leslie Picker.
“But the [market] odds are 70-80%.
For me they are half, that's all." read also Will the Fed raise rates again? The Scary Prediction Dimon's comments come as the market has actually had to reevaluate its expectations about monetary policy.
Where at the start of the year futures traders highly expected an aggressive series of interest rate cuts starting in March, they now see easing not starting until June or July, with three cuts priced in (the half of previous expectations).
In addition to high rates, markets have had to deal with the Federal Reserve reducing its bond holdings, a process known as quantitative tightening.
While the central bank is expected to begin tapering the program soon, this remains another driver of restrictive monetary policy.
“It's always a mistake to look only at the year,” Dimon emphasized.
“All these factors we talked about: QT, fiscal deficit spending, geopolitics, could play out over multiple years…I'm just pretty cautious about everything.” read also The infinite bubble on all markets According to the CEO of JP Morgan, the serious recessions that the American economy has had to face will not be repeated, such as the 2008 financial crisis which saw Wall Street collapse while the banks were hit by the fallout of the collapse of the subprime mortgage sector.
Higher interest rates coupled with a recession could hit sectors like commercial real estate and regional banks hard, but with limited macroeconomic impacts according to Dimon.
However, caution is needed because there are too many factors that can lead to uncertainty.