Michael DecterJP Morgan Chase & CoJPMTOP PICKFeb 18, 2025

Even in an uncertain economy, they have several ways to make money: serving customers, raise money for large companies, and mange investments. The last quarter was a little disappointing as earnings missed though investment banks fees grew 14% and trading and loans remained health.

He added the past week when it fell 10%. To focus instead on the net interest margin pressure of late and not buy is a missed opportunity. Investments in AI now will pay off with increased efficiency in later years.

They just reported a clear top and bottom line miss, though net interest income beat. The non-interest income and asset management missed. Expenses rose faster than revenue. Shares fell at first, but recovered when management offered a a positive forecast. Overall, results were mixed but the outlook makes this a winner.

 They report Tuesday. It consistently does well, but shares are priced for perfection. The CEO tends to sound borderline apocalyptic on the conference call. He fears he'll sound this way about AI.

It's all about the scale, and JPM's scale is tremendous. Largest US bank, and in over 100 countries. Built for almost any type of economic environment. Multiple revenue engines. Announced $50B share buyback. Strong performance due to increasing confidence about the economy. 

Chart shows 200-day MA trending higher, and series of higher highs and higher lows. Yield is 1.71%.

Best of breed in financial services. IPOs are not done yet.

Likes for the long term. Big selloff today is hitting all financials, probably something to do with this afternoon's Fed decision. Good holding long term. Valuations are getting up there, but still making a lot of money.

There is also a Canadian CDR (hedged) version but he prefers the actual stock in US dollars. He doesn't like the hedged versions of stocks which neutralize the foreign exchange component and prefers the benefit of owning companies in US dollars. He owns this and other US financials. Canadian banks have done very well.

Likes it Is up 15%. But wait until SpaceX IPOs before deciding on JPM.

Still the biggest and best global bank in the world. A good time to buy is any day that ends in "y".

Very good dividend growth trajectory last 10 years. Share buybacks. Best risk manager in the US banking space -- saw that firsthand in 2008. Keeps getting better and better. Yield is 1.95%.

Bit of delay in reward, but whole banking sector's in a great position. Tons of capital markets business coming on. Yield curve steepening is really the money driver behind borrowing/lending. Very strong trading numbers.

Capital markets broadly are improving, so more investment fees should come through. Deregulation coming through, consumer not as badly off as feared. Good place to start looking, given the sector's lagged. Yield is 2%.

All the North American banks had a great 2025. JPM is the most profitable US one. The dividend yield is rising and financial results have been strong. Is the US bank to own.

Can't go wrong. Safe, defensive banking provider. Attracts low-cost deposits. Built up wealth management. Great net interest margins, which go up over time. Yield is 2%, so not a dividend play compared to the Canadian banks.