JPMorgan: Pullback In Preferred Shares Gives A Buying Opportunity
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JPMorgan Chase's series MM preferred shares have declined since September 2024 due to rising interest rate expectations. The bank's limited exposure to net interest income makes it less vulnerable to Fed rate cuts. Potential tariffs by President Trump could boost inflation, aiding the Fed in reaching its neutral rate by 2026.
November 29, 2024 | 4:00 pm
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JPMorgan Chase's series MM preferred shares have declined due to rising interest rate expectations. The bank's limited reliance on net interest income makes it less vulnerable to Fed rate cuts.
The decline in JPMorgan's preferred shares is linked to rising interest rate expectations. The bank's revenue is less dependent on net interest income, reducing its vulnerability to potential Fed rate cuts. This context suggests a short-term negative impact on the stock price.
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