Why JPMorgan Is Still A Good SWAN Option

The Street has gotten much more concerned about funding costs and credit quality with banks in recent months, and that seems to be benefitting JPMorgan (NYSE:JPM). While JPMorgan isn’t immune to deposit/funding cost pressures, nor worsening credit quality, this top-tier bank is relatively well-positioned compared to its peers and concerns about operating leverage and capital requirements are starting to fade.

JPMorgan shares are up almost 20% since my last update, leading the way among the large banks that could reasonably be considered peers. With that outperformance, and the risk that net interest income could reach a peak in the next quarter or two, it’s harder to argue for JPMorgan’s near-term outperformance potential, but I do still see a worthwhile longer-term total return opportunity here. What’s more, if the economy weakens even more than I expect and sees a hard/harder landing scenario play out, I believe JPMorgan will fare better than most.

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Why JPMorgan Is Still A Good SWAN Option