Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon, today is Monday April 8th and I'm your host Kim Khan. Our top story so far

J.P. Morgan Chase CEO Jamie Diamond says the market should be prepared for more turbulence

than what is currently priced in.

In his annual letter to shareholders, Diamond said,

Equity values by most measures are at the high end of the valuation range

and credit spreads are extremely tight.

These markets seem to be pricing in at a 70 to 80

percent chance of a soft landing, modest growth along with declining inflation and

interest rates. I believe the odds are a lot lower than that. He pointed to huge fiscal spending, the trillions

needed each year for the green economy, the remilitarization of the world, and the restructuring

of global trade as contributors to inflation.

Therefore, we are prepared for a very broad range of interest rates,

from 2% to 8% or even more,

with equally wide-ranging economic outcomes,

from strong economic growth with moderate inflation in this case

higher interest rates would result from higher demand for capital to a recession with

inflation i.e. stagflation he said Turning his attention to AI, Diamond said that while its full effect

on banking or society isn't known, we are completely convinced that the consequences

will be extraordinary and possibly as transformational as some of the major

technical inventions of the past several hundred years. Think the

printing press, the steam engine, electricity, computing, and the internet

...