JPMorgan: Investors Are Worried About Its Capital Trajectory


  • JPMorgan is best of breed and long-term shareholders have done exceptionally well holding the stock.
  • JPMorgan is a defensive, flight-to-quality and outperforms both in recessions and in the long term.
  • The key risk currently is rapidly rising capital requirements.
  • The most concerning aspect is the recent speech by the Fed’s new Vice Chair for Supervision.
  • JPM capital requirements may need to increase materially in the next few years.
JP Morgan Chase and Co


JPMorgan (NYSE:JPM) is clearly best-in-class in the U.S. banking industry. It has been referred to as “Fortress Dimon” and the “Lebron James of banking” for very valid reasons. JPMorgan is a defensive, flight-to-quality play, aided by higher capital, superior risk management, and outperformance during market drawdowns.

Disclosure: I/we have a beneficial long position in the shares of JPM, C, MS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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