XLF - JPMorgan Chase: Even The Banking Leader Needs A Break
2024-02-21 13:30:00 ET
Summary
- JPMorgan Chase investors have outperformed their financial sector peers since the market bottom in October/November.
- The bank expects $90B in full-year net interest income in 2024 but cautions that it has likely reached its peak.
- JPMorgan anticipates a more robust market environment in 2024 and believes it is well-positioned to leverage the resurgence in the private credit market.
- I explain why JPM remains a solid bet, given its scale and market leadership - but not at this valuation.
- Even a top banking stock like JPM needs to take a well-deserved break occasionally for bullish optimism to dissipate.
I downgraded JPMorgan Chase & Co. (JPM) stock in December 2023, as I anticipated the most attractive risk/reward would likely be behind us, given its remarkable recovery. JPM has continued outperforming its financial sector ( XLF ) peers since the October/November broad market bottom. As a result, I assessed that JPM's market leadership has been instrumental in lifting its outperformance....
JPMorgan Chase: Even The Banking Leader Needs A Break