Anyone has opinion on Mega banks ? Most are down 30% from high.
JPM: run by Jamie Dimon. The safest of all.
BAC: Buffett added recently.
C: trading half of tbv.
Cons: buybacks will be less going forward. And banks stocks seems always have some sort of ceiling. Investment banks have high labor costs
Go back and see my earlier posts on them.
Anyone has opinion on Mega banks ? Most are down 30% from high.
JPM: run by Jamie Dimon. The safest of all.
I’ve never owned JPM, but you make an interesting point.
The “down from high” isn’t always a reliable indicator, but it does seem to be a better than average entry.
Same share price as four years ago, but about twice the earnings per share on trend.
There isn’t a lot of precision in that observation, but they’re definitely a whole lot cheaper.
I guess one argument against the group is that, though they aren’t going to go away,
their profits (and prices) are strongly cyclical because they are at the mercy of macro forces beyond their control.
Not just business cycles, but irregular factors that are harder to predict like tax rates and real interest rates.
Even if you know that there will be stream of profits extending decades into the future, you can spend a few years in the weeds.
Jim
Also their wealth management business, investment banking, trading desks and mortgage businesses should all decline substantially