50% off Premium Yearly

NYSE:JPM
BAC vs. JPM Driving US banks is a strong economy and flat yield curve. Unlike last year, bank movement now will be on a valuation basis. JPM trades at a 50% premium to book value, and BAC at book value, but Citibank (which he owns) trades at 70% book value and is narrowing that gap. Citi is his choice.
JPM vs. BAC Both are first-class banks. He owns JPM which trades at a much higher valuation than BAC. Both are tops in their business lines. For the next 5-10 years they'll be in a sweet spot of reducing costs with few regulatory issues to deal with. They'll use tech to drive their business, an advantage for larger banks who can afford that. They will do some small acquisitions. They should be trading at higher multiples. Cash flow allows them to raise dividends and buyback shares. Their payout ratios are much lower than those of Canadian banks.