Hi YXI friends,

JP Morgan (JPM) is America’s largest bank by market capitalisation, nearly twice the size of Bank of America. Even more remarkably, Jamie Dimon has been the CEO for 18 years, a very extended run for a Fortune 500 Chief Executive.

Under Dimon, JPM has survived the Great Financial Crisis and thrived to say the least, with its stock price up 1,440% since the 2009 low.

This week, New York Times reported that Dimon privately supports Harris, despite that Trump has also sought his endorsement. Dimon’s muted stance is due to his fear of retaliation on the bank and its staff should Trump win.

Today, we will examine JPM's latest financials, valuation, and price technicals. We offer some insights on how the stock price could react to the US Election outcomes under either Harris or Trump. A spoiler alert: perhaps it doesn’t matter as much as the media suggests.

Let’s dive in!

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Growth has slowed significantly in NII

Net Interest Income (NII)

JPM’s Net Interest Income (NII) has slowed spectacularly from its high 44% growth rate in Q2 2023. Now it’s essentially flat, but still in the positive territory unlike C or BAC.

Quarterly Revenue

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