JP Morgan CEO Jamie Dimon has jumped on the “Roaring Twenties” bandwagon.
In his annual letter to shareholders, he said “euphoria around the end of the pandemic” was likely to jump-start the U.S. economy.
Jamie Dimon’s letter had one main message: He said a huge rise in U.S. government spending will boost the world’s largest economy over at least the next two years. And that is especially true if the proposed infrastructure package is enacted.
In the 34,000-word letter, Jamie Dimon repeatedly advocated higher government spending to address some of the country’s glaring issues. These issues included: aging infrastructure, unaffordable healthcare and widening economic inequality.
Jamie Dimon said that if the government gets it right, these programs could fuel a “Goldilocks moment.”
If such an economic boom emerges, high-flying valuations in the stock markets could be justified, Dimon said.
That’s music to investors’ ears.
The Big News
Children: Silent Carriers of Coronavirus?
Children could be contagious silent carriers of the coronavirus. Over 40% of confirmed cases in children aged three and under in Hong Kong displayed no symptoms, researchers found. Data collected by researchers at Chinese University showed the coronavirus survived in stool samples for as long as 36 days in the case of one child. Researchers also cited a separate study in the U.S. that showed toddlers had significantly higher viral loads than even adults who needed intensive care.
About 80% of K-12 Teachers and Staff Have Gotten a Vaccine Dose
Nearly 80% (8 million people) of school staff and childcare workers in the U.S. have received at least one dose of the coronavirus vaccine, the CDC said Tuesday. The American Federation of Teachers – the nation’s second-largest teacher’s union – on Tuesday released a survey reporting that over 80% of association members had been vaccinated or had made a vaccine appointment. About 85% of members said their school was “operating on at least a part-time basis.”
EMA Links AstraZeneca Vaccine to Strokes
The European Medicines Agency (EMA) concluded that the AstraZeneca Covid-19 vaccine should carry a warning that blood clots – accompanied by low levels of blood platelets – are very rare side effects of the vaccine. The EMA reviewed 86 cases of blood clots, 18 of which were fatal, among 25 million people who had received the vaccine. The vaccine’s benefits still outweigh the risks, says the EMA. But vaccinated people and health-care providers should be aware of blood-clot symptoms. These include shortness of breath, chest pain, leg swelling and persistent abdominal pain.
Britain Curbs Use of AZN’s Vaccine for People Under 30
British health regulators decided to stop using the AstraZeneca’s vaccine for people under 30. The decision came as regulators increasingly suspect a link between the shot and rare blood clots. While Britain has enough vaccines from other makers to avoid a slowdown in its inoculation efforts, the concerns may dent vaccination efforts in developing countries.
The U.S. Cannot Share Vaccines
Contracts that the Trump administration signed with Covid-19 vaccine makers prohibit the U.S. from sharing its surplus doses with the rest of the world. This is what has totally prohibited the U.S. from donating or reselling vaccines. It would be in breach of contract. These legal parameters must change before the U.S. can do anything to help the rest of the world.
The Coronavirus Numbers
Here are the numbers from Thursday at 8 a.m.ET from Johns Hopkins University:
- 133,250,442 Infected Worldwide
- 694,177,908 Vaccines Given Globally
- 2,890,706 Deaths
- 30,923,521 Infected in the U.S.
- 171,476,655 U.S. Vaccine Doses Administered
- 559,117 Deaths in the U.S.
Wall Street delivered another positive session yesterday. The S&P 500 hit another all-time closing high.
Treasury bond yields are supportive (lower). This is after the Fed released minutes from its March meeting. The minutes showed policymakers are no hurry to taper or tighten monetary policy. Fed members emphasized monetary policy would be kept easy until employment recovered from its pandemic hit.
The Fed’s message gave European and Asian stock markets a nice boost. For example, the UK’s mid-cap index – the FTSE 250 – is at an all-time high.
U.S. stock futures are higher too. So, expect the current pattern to continue.
Yours in Health & Wealth,