ย 

JPMorgan Chase Stock is a Bond



๐Ÿฆ I got a comment on my last video analysis of JPMorgan Chase $JPM that it is like investing in a bond. I've been holding JPMorgan Chase Stocks since 2016 along with Apple $AAPL . But unlike Apple, I am still buying JPM. ๐™„๐™จ ๐™ž๐™ฉ ๐™ง๐™š๐™–๐™ก๐™ก๐™ฎ ๐™–๐™จ ๐™จ๐™–๐™›๐™š ๐™–๐™จ ๐™– ๐™—๐™ค๐™ฃ๐™™? ๐˜ฟ๐™ค๐™š๐™จ ๐™ž๐™ฉ ๐™ง๐™š๐™–๐™ก๐™ก๐™ฎ ๐™ฅ๐™ง๐™ค๐™ซ๐™ž๐™™๐™š ๐™˜๐™ค๐™ฃ๐™จ๐™ž๐™จ๐™ฉ๐™š๐™ฃ๐™ฉ ๐™ฅ๐™–๐™ฎ๐™ข๐™š๐™ฃ๐™ฉ ๐™ก๐™ž๐™ ๐™š ๐™– ๐™—๐™ค๐™ฃ๐™™?


๐Ÿ”ข Warren Buffett likes to look at stocks as if they are bonds since it is easy to find the intrinsic value (or present value) of a bond. The earnings yield of JPM today is 6.5%, which is better than treasury yields (eg. TLT $TLT at 1.5%) and even junk bonds ( $JNK at 5.0%). The earnings yield of the S&P 500 $SPX500 is 2.5%. JPM is one of the rare stocks which we can call safe still ๐™ฌ๐™ž๐™ฉ๐™ ๐™–๐™ฃ ๐™š๐™–๐™ง๐™ฃ๐™ž๐™ฃ๐™œ๐™จ ๐™ฎ๐™ž๐™š๐™ก๐™™ ๐™๐™ž๐™œ๐™๐™š๐™ง ๐™ฉ๐™๐™–๐™ฃ ๐™Ÿ๐™ช๐™ฃ๐™  ๐™—๐™ค๐™ฃ๐™™๐™จ, which would have been normal if we were not in a stock market bubble.


๐Ÿ‡บ๐Ÿ‡ธ๐ŸŒŽ The ๐™ฌ๐™ค๐™ง๐™ ๐™ž๐™ฃ๐™œ ๐™š๐™ฃ๐™ซ๐™ž๐™ง๐™ค๐™ฃ๐™ข๐™š๐™ฃ๐™ฉ ๐™›๐™ค๐™ง ๐™—๐™–๐™ฃ๐™ ๐™จ ๐™ž๐™จ ๐™—๐™–๐™™ with zero interest rates, quantitative easing and the Dodd-Frank Act of 2011. But JPMorgan Chase has shown resilience. Its ROE is the highest among the big banks and is back to pre pandemic levels. It is because they are expanding their business both domestically and internationally. By mid-2021 Chase will be in all 48 lower states and may soon overtake Wells Fargo as the bank with the most branches in the US. JPMorgan is already the largest investment bank in the world. JPMorgan Chase also has a great management with Jamie Dimon considered to be the greatest CEO in the world.


๐Ÿ’ฐ JPMorgan Chase set aside over $30 billion as reserve for credit losses for last quarter. But only $2 billion was used. They want to ๐™ฅ๐™ก๐™–๐™ฎ ๐™ž๐™ฉ ๐™จ๐™–๐™›๐™š as uncertainties still loom with this pandemic and recession.


๐Ÿ’ธ JPMorgan Chase is safe and can provide consistent payment, something we will usually see with a bond. Calling JPM stock a bond can be dangerous in the short-term as it is more correlated with stocks. But if we're looking at the long-term, then the correlation becomes irrelevant. This is a stock ๐™ฉ๐™ค ๐™—๐™ช๐™ฎ ๐™ž๐™ฃ ๐™–๐™ฃ๐™ฎ ๐™˜๐™ค๐™ง๐™ง๐™š๐™˜๐™ฉ๐™ž๐™ค๐™ฃ ๐™–๐™ฃ๐™™ ๐™๐™ค๐™ก๐™™ ๐™›๐™ค๐™ง๐™š๐™ซ๐™š๐™ง.


Watch the full video on YouTube:

https://www.youtube.com/watch?v=ftykUel3Pi8


Hereโ€™s the full analysis of JPMorgan Chase:

https://ishfaaqpeerally.teachable.com/courses/662813/lectures/29692769



๐Ÿ”ฌJoin my INVESTMENT RESEARCH PARTNERSHIP for all my analysis and research, along with a course for investing for beginners for free๐Ÿ”ฌ

https://ishfaaqpeerally.teachable.com


๐Ÿ“š New to investing? Here's my investing COURSE FOR BEGINNERS with over 150 lectures ๐Ÿ“š

https://ishfaaqpeerally.teachable.com/courses/enrolled/721696


๐Ÿ—ฃ๏ธJoin my private investing FACEBOOK GROUP for more ๐Ÿ—ฃ๏ธ

https://www.facebook.com/groups/IshfaaqInvesting/


๐Ÿ’ฌ Join my DISCORD CHAT ๐Ÿ’ฌ:

https://discord.com/invite/t9YvXfU


๐ŸŒ WEBSITE - Subscribe for Weekly Newsletter ๐ŸŒ:

https://www.ishfaaqpeerally.com/


1 view0 comments

Recent Posts

See All
ย