In the face of so much political turbulence, it can be difficult to keep up with all the headlines each day. While the market has made a comeback since the end of 2018, growth has slowed, and many investors are nervous about what the future may hold. Many of the economic fundamentals remain positive, unemployment is low, the economy continues to expand, and interest rates remain historically low. However, despite all of this, millions of Americans are living paycheck to paycheck, don’t have cash on hand for emergencies, and are not saving enough for retirement. With all of this to consider, its no wonder that people feel overwhelmed by the scope of the problems facing the country.
Mr. Jamie Dimon, CEO of JP Morgan Chase, publishes an annual letter to shareholders in which he goes in depth on issues that concern not just the bank, but his thoughts on current critical issues as well as public policy. He points out that while America is still the most prosperous country in the world, we would be short sighted to ignore the mounting issues that are crippling our society. Among these problems include growing wealth inequality, failing infrastructure, out of control healthcare costs, an education system badly in need of reform, and an immigration policy that is tearing the country apart.
First and foremost, Mr. Dimon places the blame for some of these issues on our partisan political system. He says that both parties have become unwilling to compromise and need to begin to focus on what is good for our society rather than just politics. Beyond the political parties, he points out that institutions are also too focused on their own self-interest, to the detriment of society at large. Short term thinking will never lead us out of the problems that we currently face. I would encourage everyone to review Mr. Dimon’s letter, regardless of your political affiliation. Click here to read the letter.
Wayne L. Locke, CFP® Matson Financial Advisors, Inc.
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