JP Morgan Chase & Co (JPM)

It reports Tuesday and he expects an amazing quarter, but that isn't the point. Instead, the CEO's cautious comments crushed this stock last quarter but he could do it again. If this happens again, wait for the stock to go down before buying. Buy some, then maybe buy more later.

Largest and most diversified of the US banks. Leadership in retail, wealth management, and capital markets. Capital markets recovery is underway. Lots of investment in payment technology (automation, analytics), which is driving operating leverage. AI should be very beneficial to financials -- better customer experience and more efficiencies for employees.

Less regulation and lower taxes will help consumers and reduce bank loan losses. Yield is 1.82%.

Trades at only 16x PE, but don't buy it now. The CEO is great, a straight-shooter; when things are going well, the CEO tends to warn what could go wrong, which can be construed as pessimism which pressures the stock. This has often happened, such as announcing he would tighten the bank's lending policy. THAT's when you buy.

She favours US financials at this time. This name sets the global standard of where she wants to be on scale, risk, and execution.

GS is up 61% this year, and JPM 40%, better than the Mag 7. We're already seeing a broadening of the rally into financials and he expects 2026 to be a much better year for them. M&A plays perfectly into these names, and they don't trade at high PEs. Is very bullish these banks.

He's talked about this one many times on the show. Trading at 2.5x book value. More favourable de-regulation under the Trump administration will benefit the banks, though this one may not see a significant jump because it's already so richly valued.

He's going to pull the lens back, as he likes to look at things from a macro perspective. In 2020, we went from falling interest rates for 40 years to what is likely rising long-term interest rates for the next 25-30 years. That benefits banks in particular.

If you look at the XLF in the US, after going nowhere from 2008-2021, it finally made a new high. Beginning of a new long-term bull market that probably goes on 10-12 years. During that time, earnings go up and so do dividends. The multiple expands.

US banks have had a wonderful year. He's used JPM as a Top Pick many times, and he also owns MS. 95% of global banks are trading above a rising 200-day MA. Don't be afraid of a bull market. These are dividend growth stocks, and when there's inflation a rising stream of income is pretty attractive to offset the rising cost of living.

Banking benefits from higher interest rates. He hasn't trimmed and you could buy more on weakness.

A name she really likes.

One of his top 10 positions. Financial sector has been performing nicely. Best income, balance sheet, and technicals. Leader in the sector breaking out in 2013, whereas the sector didn't break out until 8 years later. That tells you what investors think about it. Long-term bull market in financials in front of us.

In terms of quality, hard to argue against JPM -- best of breed. GS is tops on the investment banking side. He's overweight US banks.

It is a leader with a dominant position and a good management team that knows what they are doing. It is always expensive and others have a cheaper valuation but this is a core holding.

Its reaping the rewards over the years is paying off. Bank of America hasn't had a big windfall or payday and is trying to emulate JP Morgan. He advised the caller to stick with Bank of America relative to JP Morgan and Wells Fargo.

A top bank run by a great CEO. Worries over small US regionals have boosted inflows into JPM. Valuation is reasonable.

He trimmed, selling into strength. He's up 38% in this the past few months. Trimmed for pure risk management. Still believes in JPM.