JP Morgan Chase & Co (JPM)

In the 2009 crisis, JPM almost wasn't involved. Made a new high in 2013, sector not until 2021. Best management and balance sheet. Spent the most on technology. Most efficient. Raised dividend twice in last year. Gold standard in the sector globally. Centrepiece of any portfolio. Yield is 2.1%.

It benefitted from volatility in the regional banks last year (JPM bought a regional). Great track record and management. 

The best bank in the world. They continually do well and exceed expectations. A great CEO. But at 2x book now, it's not cheap, though trading at only 11.5x PE. Not a screaming buy, but good enough given the quality of the bank.

Banks are reporting today and shares are down. JPM reported loan-loss provisions now at $3 billion instead of $2.8 billion. JPM expects the consumer to be weaker. That's a concern.

Trades at a low 12X PE, less than the average stock. It's the best big bank, possibly in the world.

They warn of a new chequing fee. He likes how the CEO is growing more risk-averse and managing risk more. That keeps JOM on top of the banking sector.

High quality. Growth. Stress tests have been good. If you don't want to be penalized by the currency exchange, consider buying the CDR, for which you pay a small fee.

As a large, money-center bank, JPM benefitted from huge outflows when the regional banks melted down in March 2023. They boast a strong balance sheet.

US banking has done better than Canada, but there are better places to put money. This one has done quite well. First place to look is around $194. Once it goes past that, the next level would be $186. Final on-sale price would be $170. 

If you have a long horizon, don't get too cute with the buy price, as the price targets are never that precise. Pick up a partial position at a reasonable price. If it starts to move higher, perhaps add your remaining position. Sometimes you have to use good portfolio management, rather than technical analysis.

One of the top investment banks in the world. Very strong franchise. Excellent margins on business lines. Expanding globally with excellent leadership. Balance sheet strength unmatched. Will continue to own shares. Top 5 holding within portfolio. 

After they reported, shares declined 10%, but he still thinks they're best in breed, with retail banking on top. They increase their 2.4% dividend by 10% annually and trades at a 10x forward PE. Banks have been strong the past year.

He's been long since March 2023. There's 15-20% upside.

Are the biggest and best of the US banks. Good to hold in an RRSP or cash account, but not a TFSA because that charges a withholding tax on US stocks. JPM manages risks well.

Can't predict their earnings, but a lot of good news is already baked into the stocks. No earnings growth is expected this and next year. Nervousness in the US banking system has attracted assets to JPM, though. For the first time in a long time, he's more attracted to Canadian than US banks, because the bad news has been baked into the former and their valuations are better with better earnings growth. That said, if JPM pulled back, he's consider this.

#1 rule for him is to own the leader in a sector. By far, the best balance sheet. Spent the most on technology. Best leadership. Regional banks fell profitably into its hands. Raised dividend twice this year, amounting to 15%. Cost of capital has become more dear, so pricing power will improve, leading to outperformance. A centrepiece for any portfolio. Yield is 2.3%.