Bank of America And JPMorgan Chase: Deregulation Tailwinds Ahead

(12min)

Summary

  • JPM and BAC have benefited from a sharp rally post-election, both outperforming the average financial sector.
  • I will argue JPM and BAC rallies are far from over given the potential deregulation expected from the upcoming Trump administration.
  • Leading banks like BAC and JPM are especially well-positioned to benefit due to their scale, profitability, and financial strength.
  • Their current P/E ratios admittedly appear elevated, but investors should also examine other valuation metrics (such as dividend yields).
  • All told, some valuation premium is well justified given the potential for sustained growth ahead.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »
J.P. Morgan, BofA, Citibank, Morgan Stanley, U.S. Bank, BNY Mellon, Wells Fargo, Goldman Sachs and PNC. Assorted American bank and financial service company apps

Robert Way

BAC and JPM stock: previous thesis and new developments

I last covered Bank of America Corporation (NYSE:BAC) back in July 2024. That article was titled "Bank of America: Buy Before It Climbs More After Q2 Earnings”. As you can already guess

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This article was written by

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Envision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BAC 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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