Headwinds ahead for JPMorgan, analysts claim
Seeking Alpha covered some of the skepticism now haunting JPMorgan Chase’s (JPM) mortgage operations. Falling refi volumes and a constant string of legal battles could cause investors to lower their outlook.
In sum JPM is still a great bank. It will eventually work through all of these problems. However, for now its legal problems and its mortgage business problems seem likely to keep it from growing. In fact earnings might even shrink. This means that JPM, while still a great bank, is not a good risk for earnings growth for the near term. It is time to take profits. There are other banks which are in far less trouble.