Key Takeaways From JPMorgan Chase Group & Co. (JPM)’s Guide To Market And Economy

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JPMorgan Chase Group & Co (NYSE:JPM) released their guide to the stock market, as well as, economy. The report comes amidst the strong American economy entering the year 2015 on the back of a solid GDP growth while S&P 500 reached its life-time high. On top of these, the dollar has gained significantly. However, the same cannot be said about the international markets, especially, Europe and Japan.

Major Index

JPMorgan Chase Group & Co. (NYSE:JPM)’s guide pointed out that the year 2014 witnessed America’s major stock market index, S&P 500, crossing the psychological 2,000-points mark for the first time in the history. As a result, the forward profit earnings ratio rose to 16.2X at the end of December. Before the financial crisis stuck, the forward PE ratio was 15.2X in October 2007.

Dividend yield jumped to 1.9% at the close of the year from 1.1% in March 2000. However, the increase was negligible considering it was 1.8% in October 2007. The ten-year treasury yield also reduced to 2.2% from 4.7% in October 2007 and 6.2% in March 2000. The lower yield indicated the soft period of interest rate after the financial crisis in 2008. Similarly, before the 9/11 incident in 2000, interest rate was higher that helped higher yield.


JPMorgan Chase Group & Co. (NYSE:JPM)’s research pointed out that since October 2007, health sector gave a return of 118.7% followed by consumer discretionary 115.8% in the equity portfolio. However, financial sectors yet to return to green as the sector suffered a negative return of 19.6%,

As far as the economy, real GDP for the third quarter witnessed YOY growth of 2.7% while the quarter-over-quarter growth was an impressive 5% in America. For the five-year period, GDP achieved 2.4% uptick while employment’s average growth was 1.1% during the same period.

Oil Production

JPMorgan Chase Group & Co. (NYSE:JPM)’s guide indicated that production of oil in the U.S. witnessed 13% uptick in 2014. It expects 7.2% growth in the current year to reach 14.9 million barrels a day. On the other hand, there was no difference in the production of 36.0 million barrels a day from OPEC. On the consumption side, there was no difference in the U.S. last year. However, consumption is estimated to grow 0.7% in the current year in America.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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