Banks are having a field day in today's market
By Jennifer Saibil – Jul 17, 2026 at 12:15PM EST
The Motley Fool
Key Points
- JPMorgan reported blowout second-quarter results, like other banks.
- The company's growth was driven by its Investment Banking and Equity Markets groups.
- Banks are in the midst of a strong bull market, but there's no way to know when it's going to peak.
JPMorgan Chase (JPM0.60%) is the largest bank in the U.S. by assets, and it had a blowout quarter. But it's what CEO Jamie Dimon said about the market now that every investor needs to hear.
As good as it gets
"It's getting close to as good as it gets," Dimon answered on the second-quarter earnings call when asked by an analyst if this is as good as it gets.
The analyst, Mathew O'Connor from Deutsche Bank, noted how JPMorgan Chase is firing on all cylinders across its business. Dimon followed that up by pragmatically noting that "We just don't know how long it's going to last.
"Could it get a lot better than this? It can get better," he added later, "But how much better, I don't know."
The second-quarter results were outstanding. Here are some highlights:
The company's commercial and investment bank (CIB) division was the standout, benefiting from robust IPO activity, including Space Exploration Technologies, of which it was a co-underwriter. According to reports, it received a $75 million payout for its services.
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor Canada has outperformed the return of the S&P/TSX Composite Index by 8 percentage points since 2013*
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Investment Banking revenue was up 45% over last year, and its Equity Markets group, which is its trading arm, was up 86%. Consumer banking, though, was also healthy, with an 8% increase in revenue and 2% increase in average loans.
Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
The implications of Dimon's message are that the bull market doesn't seem to be ending yet, but that it's going to come to an end at some point.
If your portfolio is tailored to a strong bull economy, with a large portion in high-growth and artificial intelligence (AI) stocks, you might want to start diversifying into more protective stocks. You won't be able to predict when the market reaches a high, so you'll want to be prepared in advance. JPMorgan Chase is actually a great candidate itself.
At the same time, you don't want to miss potential gains in the market. If you're a conservative investor, consider adding some lower-risk growth stocks to your portfolio or growth-focused exchange-traded funds like the Vanguard Growth ETF (VUG1.33%), which helps reduce risk through diversification.
Before you put a single dollar into the stock market, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now…the Top 10 TSX Stocks that made the cut could produce monster returns in the coming years.
Consider when Shopify Inc. made this list in 2016…if you invested $1,000 at the time of our recommendation, you’d have more than $40,000! Or when Mercadolibre, Inc. made the list on January 1, 2015…if you invested $1,000 at the time of our recommendation, you’d have over $17,000!
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"Could it get a lot better than this? It can get better," he added later, "But how much better, I don't know."
The second-quarter results were outstanding. Here are some highlights:
- Revenue increased 27% year over year.
- Net interest income was up 10%.
- Earnings per share were $7.70, up from $2.46 last year.
- Return on tangible common equity (ROTCE) was 29%, up from 21% last year and 23% in the first quarter.
The company's commercial and investment bank (CIB) division was the standout, benefiting from robust IPO activity, including Space Exploration Technologies, of which it was a co-underwriter. According to reports, it received a $75 million payout for its services.
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor Canada has outperformed the return of the S&P/TSX Composite Index by 8 percentage points since 2013*
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor Canada.
Investment Banking revenue was up 45% over last year, and its Equity Markets group, which is its trading arm, was up 86%. Consumer banking, though, was also healthy, with an 8% increase in revenue and 2% increase in average loans.
Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
The warning behind the message
The implications of Dimon's message are that the bull market doesn't seem to be ending yet, but that it's going to come to an end at some point.
If your portfolio is tailored to a strong bull economy, with a large portion in high-growth and artificial intelligence (AI) stocks, you might want to start diversifying into more protective stocks. You won't be able to predict when the market reaches a high, so you'll want to be prepared in advance. JPMorgan Chase is actually a great candidate itself.
At the same time, you don't want to miss potential gains in the market. If you're a conservative investor, consider adding some lower-risk growth stocks to your portfolio or growth-focused exchange-traded funds like the Vanguard Growth ETF (VUG1.33%), which helps reduce risk through diversification.
Should you buy stock in JPMorgan Chase right now?
Before you put a single dollar into the stock market, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now…the Top 10 TSX Stocks that made the cut could produce monster returns in the coming years.
Consider when Shopify Inc. made this list in 2016…if you invested $1,000 at the time of our recommendation, you’d have more than $40,000! Or when Mercadolibre, Inc. made the list on January 1, 2015…if you invested $1,000 at the time of our recommendation, you’d have over $17,000!
Stock Advisor Canada provides investors with two new stock picks each month – one from Canada and one from the U.S. – plus an easy-to-follow blueprint for success including guidance on building a portfolio, regular updates, and more. The Stock Advisor Canada service has outperformed the return of the S&P/TSX Composite Index by 8 percentage points since 2013.* Don't miss out on the latest Top 10 TSX Stocks list, available when you join Stock Advisor Canada.
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