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Jamie Dimon Says 8% Fed Funds

John Lekas – CEO & Senior Portfolio Manager

April 10th, 2024

We believe there’s a lack of recognition regarding the extent of inflation, both in the United States and internationally. The economic ramifications of distributing $7 trillion during the pandemic are big, with a multiplier effect of approximately 7x, totaling around $49 trillion. These effects are still unfolding. If JP Morgan CEO Jamie Dimon is correct, recession may loom by the end of 2024. The short end of the yield curve will remain the sweet spot for the remainder of 2024.

Our focus remains on the U-3 and U-6 unemployment rates, particularly as wages remain elevated. Looking ahead we expect equity market volatility to persist throughout 2024, with net returns finishing around 8% at year-end (where they currently are). The yield curve should normalize, with the 30-year Treasury yield settling around 5.4% and the 2-year yield at 4.5% (Refer to our 2024 Market Newsletter for more information). Our view is that Fed funds will not reach 8% as CPI, PPI, and unemployment are normalizing.

To summarize, our funds outperformed our peers at the close of 2023 by ignoring the pundits and keeping duration low rather than extending duration. Presently, our High-Quality Income Fund has a duration of 0.29 and an average credit rating of A+. Our Short-Term High Yield Fund has a duration of 0.39 and an average credit rating of BB.

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Investing in any mutual fund involves risk, including loss of principal. There is no guarantee the funds will achieve their objectives. Expense ratios are as of the 9/28/2023 Prospectus.

An investor should consider the Fund’s objectives, risks, charges, and expenses carefully before investing or sending money. This and other important information can be found in each Fund’s prospectus. For more information, please call please read the prospectus carefully before investing.

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Leader Capital Corp. serves as adviser to Leader Short Term High Yield Bond Fund, and Leader High Quality Income Fund, distributed by Vigilant Distributions, Inc., Member FINRA/SIPC. Leader Capital and Vigilant are not affiliated.

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