JP Morgan Chase: No Days Of Trading Losses For How Many Years?

Posted by on March 1, 2017 1:57 pm
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Still don’t believe the stock market is rigged?

Consider what JP Morgan Chase CEO, Jamie Dimon, had to say.

“The studies show lower taxes help wages flow to lower paid Americans. It’s the flipside of unintended consequences,” he said.

The comments came after the bank revealed its traders made $80 million a day on average in revenue for 2016. It was a perfect year of trading, with zero days when the bank traded at a loss, the third since 2013, according to a presentation.

Well, case closed. 

But he also had some other interesting things to share.

“America needs corporate tax reform,” Dimon said during an investor conference at the company’s headquarters in New York.

Dimon, 60, argued that if the Trump administration cut taxes for companies, then workers would get higher wages, citing unnamed studies.

“It’s not hurting JPMorgan Chase,” Dimon said. “It’s hurting the average American — that’s why it should be done.”

“The studies show lower taxes help wages flow to lower paid Americans. It’s the flipside of unintended consequences,” he said.

Fair enough, but I don’t think the above makes very much sense. US Corporate profit margins are at some of the highest levels they have been in decades. Current excess cash flow is being used to repurchase stocks at obscene valuation levels and M&A. I am having a hard time believing that corporations would all of a sudden grow a heart and distribute tax saving to rank and file employees.

Most importantly. 

“One fundamental issue is whether Obamcare comes first. That will clearly delay tax [reform] and maybe make it harder to get something done,” he said.

“Best case: if Obamacare comes first, it’s going to take 12 months to do tax,” he added.

Dimon’s comments echo others on Wall Street — notably, Goldman Sachs, whose economists have warned that markets are running at “maximum optimism” and that corporate tax reform won’t happen this year.

Couldn’t agree more. The stock market is currently mispricing this.