Displaying items by tag: jp morgan

Tuesday, 12 March 2019 12:46

JP Morgan Sets New Benchmark for Low ETF Fees

(New York)

JP Morgan has plunged headlong into the ETF business since launching its first fund a few years ago. Now the asset manager has debuted a new broad equity tracker than undercuts the market on fees. JP Morgan’s new BetaBuilders US Equity ETF will track mid and large cap US stocks and will seek to track the results of the Morningstar US Target Market Exposure index. The fund costs just 0.02%, or $0.20 for every $1,000 invested per year, one basis point lower than its nearest competitor.


FINSUM: This is a good broad index tracker that costs next to nothing. We expect it will gobble up AUM nicely, but it remains to be seen how well its tracks the index versus competitors, as 1 bp is a tiny margin that could easily be eaten up by performance differences.

Published in Eq: Large Cap
Tuesday, 05 March 2019 11:41

JP Morgan Says Stocks Headed Higher

(New York)

JP Morgan is joining the bullish bandwagon. While fear that the rally has been too fast permeates across the markets, JP Morgan is stepping in to say that they think the market has plenty of runway higher. The bank thinks stocks have a good tailwind behind them as a trio of positive factors exist: a dovish fed, a stable yield curve, and pending US-China trade deal. The bank thinks that stocks look like they did right after the 2015-2016 correction cycle, a period right before a big bull run.


FINSUM: We are starting to think that shares may have some good runway left. The correction in P/E ratios was a very healthy adjustment to end the year, and the macro situation is looking positive.

Published in Eq: Total Market
Monday, 04 February 2019 11:14

JPMorgan Says a 2020 Recession Won’t Happen

(New York)

For the last six months, there has been a lot of focus in the media and amongst analysts that a recession will be arriving in 2020. 2019 always seemed to close of a call because of how the economy was trending, but 2020 seems to be a safe bet based on some of the indicators out there. Now, JP Morgan is saying a recession in 2020 is unlikely. The catalyst for the change? The Fed. Strategists at JP Morgan concluded “If the Fed is less spooked by full employment, more tolerant of an inflation overshoot and less anxious to reach restrictive policy, then 2020 might not be a year to think about recession and so late 2019/early 2020 would be premature to position defensively cross-asset”.


FINSUM: This analysis is dead simple, but we would agree. If the Fed is less hawkish, then it will prolong this cycle.

Published in Eq: Total Market

(New York)

Are you hoping for a return to big company buybacks? For the few years before last year’s big losses, buybacks were a big part of the nice returns seen by the market. A return to such behavior, while questionable on the part of companies, would likely help support share prices. Well, JP Morgan thinks it’ll be another major year for buybacks. Just like last year, companies are expected to announce over $1 tn of buybacks on the back of the benefits from Trump’s tax cuts. Overseas cash is expected to help power the repurchases.


FINSUM: We are not particular fond of the underlying financials of buybacks (at least when companies issue debt to do so), but do think this would be very supportive of share prices this year.

Published in Eq: Dividends

(New York)

Banks are usually the last ones to forecast a recession. Saying things are heading south is usually not good for business. However, despite this a slew of major banks, including Goldman Sachs, JP Morgan, and BofA, are all saying that the risks of a recession in 2019 are rising. While they are still loath to say a recession will happen next year, JP Morgan just increased the odds considerably, saying there is a 35% chance. In March they said it was just 16%. Jobs data has just started to weaken, which is a warning sing, and the yield curve has begun to invert, another indicator of trouble ahead.


FINSUM: We know a recession is on the way, but the timing is the tough part. Our best bet is towards the end of 2019 or Q1 2020.

Published in Eq: Total Market
Page 7 of 11

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…