Tags: warren buffett | jamie dimon | consumer | trump | economy

Buffett, Dimon: 'Consumers in Very Good Shape' Under Strong Trump Economy

(Valiantsin Korznikau/Dreamstime)

By    |   Thursday, 07 June 2018 03:23 PM

Investment gurus Warren Buffett and Jamie Dimon cited a laundry list of factors for investors to remain optimistic about the U.S. economy.

"Right now, there's no question: It's feeling strong. I mean, if we're in the sixth inning, we have our sluggers coming to bat right now," Berkshire Hathaway Chairman Buffett told CNBC.

"The way I look at it, there is nothing that is a real pothole," J.P. Morgan Chase Chief Executive Dimon told CNBC in the same interview.

"If you look at how the table's set, consumers are in very good shape," Dimon said. "Their balance sheet, their incomes, wages are going up, their debt levels are low, all the credit written since the Great Recession is pristine, whether it's mortgage credit — other than student lending, which is done by the government."

However, the “Oracle of Omaha” warned investors that a strong economy doesn't necessarily mean it's a good time to buy stocks.

"The decision on the stock market should be made independent of the current business outlook," Buffett said. "I don't think you should buy stocks based on what you think the next six months or year is going to bring."

"I'm no good at predicting out two or three or five years from now, although I will say this: There's no question in my mind that America's going to be far ahead of where we are now 10, 20 and 30 years from now," the 87-year-old billionaire added. "But right now, business is good. There's no question about it."

For his part, Dimon predicted that the economic prosperity could flourish for many more years.

"Business sentiment is almost at the highest level it's ever been, consumer sentiment is at its highest levels, markets are wide open, housing's in short supply and my guess is mortgage credit will expand a little bit," Dimon said.

Dimon and Buffett are far from being alone in their optimistic economic predictions.

White House economic adviser Larry Kudlow predicts that the U.S. economy, the fastest growing among industrialized nations, is on the path to even greater prosperity under President Donald Trump.

“The United States now has the fastest growing economy in the world, according to the OECD, or at least the fasting growing economy among the industrialized nations,” Kudlow told reporters Wednesday at a White House press conference.

To be sure, the Organisation for Economic Cooperation and Development (OCED) reported in its biannual Economic Outlook that among the “major seven” economies, the U.S. recorded the highest annual growth (2.9%), while Japan recorded the slowest annual growth (1.0%).

The veteran financial guru and former Ronald Reagan adviser said Trump's accomplishments are "contributing to our economic growth" and are evident in countless recent reports, such as small-business confidence, consumer sentiment and job growth.

“The United States economy is going through a very positive transformation right now, as I said earlier: lower tax rates, rollback of regulations,” said Kudlow, director of the White House's National Economic Council.

“The war against business is over. The war against success is over. The war against energy is over," Kudlow explained. "We have now freed up the animal spirits; you can see that by the confidence indexes,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

For his part, the president has taken to Twitter to tout his administration's economic accomplishments.

"The U.S. has an increased economic value of more than 7 Trillion Dollars since the Election. May be the best economy in the history of our country. Record Jobs numbers. Nice!" he wrote.

(Newsmax wire services contributed to this report).

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Investment gurus Warren Buffett and Jamie Dimon cited a laundry list of factors for investors to remain optimistic about the U.S. economy.
warren buffett, jamie dimon, consumer, trump, economy
Thursday, 07 June 2018 03:23 PM
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