Les Billets de Monocle

Statement

07 June 2022

Last Name : Dimon
First Name: Jamie
Nickname : The Diamond
Age: 66 years old
Distinguishing feature: Always wears the same cufflinks
Position: CEO of JP Morgan since 2006 - the only current big bank boss to have experienced 2008

Statement: "I've been saying for some time that the weather is good right now but the clouds are gathering and a storm is coming. I'm going to change that prediction: it won't be a storm, but a hurricane. So we don't know yet if it's going to be a small one or a big one, but at JP Morgan we're going to prepare for it and we're going to be very conservative with our balance sheet."

What I think: One more warning to add to those recently uttered by the CEOs of Facebook, Target, Tesla, Uber, etc... If there was a U.S. CEO sentiment index, it wouldn't be flying high today.

To do: If you are in for some bad weather, it's a good idea to check your portfolios BEFORE the downpour. There are some risky bets that you should put aside for the time being. Remember that problems with liquidity, leverage, derivatives etc... always occur during crises - no coincidence that Maddoff blew up two months after Lehman Brothers.

That said: Dimon has already barked up the wrong tree. In 2012, when rumors of large losses for JP Morgan on credit derivatives came out, Dimon called it a "tempest in the teapot". In reality, the bank will lose $7 billion because of the trader Bruno Iksil who was nicknamed "London Whale". So obviously, "the whale in the teapot" is worthy of being nominated for an Academy Award in the category of blunder.

Have a good week,

Charles

Monocle Fund Performance 
On June 3, Monocle (A share) is at +0.92% over 2022.

2021: +4,23%
2020: +6,44%
2019: +6,09%
2018: +0,11%
2017: -1,25%

Disclaimer

This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

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