Part 6/13:
For example, in 2018, Dimon was actively warning that US growth and inflation might accelerate, suggesting yields could climb to 4% or more. By August, he even proposed that yields could hit 5%. These comments prompted widespread speculation that Treasury yields would rise dramatically, prompting some investors to sell bonds anticipating losses.
However, the reality was quite the opposite. The 10-year yield never surpassed 3%, and by late 2019, it hovered near historic lows around 1.5%, with funds rushing into safe assets. JP Morgan’s increasing bond holdings during these periods clearly defied their CEO’s public forecasts—a sign that the bank’s actual investment strategy was aligned with a much more subdued inflation outlook than Dimon’s rhetoric indicated.