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JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon is known for being very direct, and what he had to say from the World Economic Forum in Davos, Switzerland, didn't disappoint. His message on CNBC's "Squawk on the Street" Wednesday came down to five simple words that should be music to the ears of every investor on the planet…
…you ain't seen nothing yet.
Clearly I'm paraphrasing, but there's some real insight in what he had to say.
As always, though, you've got to go beyond the headlines and read between the lines which is exactly what we're going to do today. As always, I've got a recommendation poised for big gains as a result of what everyone else is missing.
Jamie Dimon has a long history on Wall Street that started, ironically enough, with another legendary name, Sandford "Sandy" Weill. Dimon became Weill's protégé after graduating from Harvard Business School in 1983. Technically, Dimon became Weill's assistant at American Express after turning down offers from Wall Street's "holy trinity" – Goldman Sachs, Lehman Brothers, and Morgan Stanley (if my memory serves).
It was a partnership like no other partnership.
Weill, a hard-charging, cigar-chomping financier, and Dimon, an adept thinker capable of brilliantly understanding Wall Street's intricacies almost instantly.
I recall meeting both men in the mid-1980s shortly after they left American Express to take over Baltimore-based Commercial Credit and thinking to myself that they would be unstoppable.
Over the next few years, Weill and Dimon would go on to make deals Wall Street thought impossible before ultimately taking over Citicorp via Travelers Group and falling out rather spectacularly in a story that's best reserved for another time.
What matters is that Dimon's made a career of doing the impossible and anticipating the unthinkable. Examples include persuading former JPMorgan CEO William Harrison to buy Bank One in a $58 billion move that quadrupled shareholder value, to exiting the subprime market, SIVs, and CDO markets at the height of the boom that ultimately led to the Global Financial Crisis in 2008. He even repaid $25 billion in TARP funding early in June 2009, a move that most investors have forgotten.
My point is that Jamie Dimon is not the financial antichrist like most people believe. In fact, I believe he's the only executive on Wall Street today who truly "gets it" when it comes to how money actually works.
So I'm inclined to listen very, very carefully when he speaks.
You should, too.
Speaking to CNBC's "Squawk on the Street," Dimon has picked up on many of the same themes we're following, including, most notably, that he believes Trump-led tax reforms could prompt economic growth of 3% to 4%. That suggests we're in good company.
What's more – and this is the important part – Dimon points out that the real money hasn't yet been put on the table. That'll happen nine to 12 months from now…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.