While many people (including us) steered clear of JPMorgan Chase (JPM) and what some described as its muddled results that were spruced-up by one-time items, others feel the quarter was a testament to the earnings diversification that only a big, global, diversified bank can deliver.
Count John Lewis among the latter. In fact, this Ohio-based market maven from New Albany Capital Partners says the sheer fact that JPMorgan is able to post such strong non-interest income via its capital markets operations is a huge advantage that is unavailable to most of its smaller, regional rivals.
That's not to say there's no risk in those financial businesses. Far from it. But Lewis says at a time of near zero loan growth, especially for commercial and industrial projects, many regional banks are essentially mired in the mud of sluggish profit growth, and should thus be avoided.
One way he likes to leverage the improving profit theme is through the iShares S&P 500 Growth (IVW) ETF, which is one of his top holdings.
Notably, perhaps shrewdly, he balances that growth fund exposure with a stable of megacap blue chips, such as Procter & Gamble (PG) and Johnson & Johnson (JNJ), and he's now starting to stalk some dividend plays, too. And leave it to our friend, a Marine Corps alum, to show his stock picking bravado by dragging Microsoft (MSFT) to the battlefield after a decade of failing to get it done.
For more on Lewis' market views, be sure to watch the accompanying video.
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- iShares S&P 500
- JPMorgan Chase
- capital markets
- blue chips