Another Reason to Love This Big Bank Stock

Invest first in best-of-breed companies [View in browser]( Proprietary Data Insights Top Big Bank Stock Searches This Month Rank Name Searches #1 Bank of America 110,515 #2 JPMorgan Chase 107,812 #3 Citigroup 80,305 #4 Wells Fargo 35,731 #5 Bank of Nova Scotia 11,720 #ad [Don’t Miss these 3 Investment Trends for 2023]( When’s the Last Time You Wrote a Paper Check? Probably for rent. If, of course, you’re a renter. Rent or own, The Juice has news on a big bank stock that adds to our bullishness. That’s coming, but speaking of rent… Move Over, San Francisco New Yorkers hate when San Franciscans refer to the City by the Bay as “The City.” Capital T. Capital C. In their eyes, the only city that deserves this designation is the Big Apple. The City so nice they named it twice. Zoo York! And, once again, New York, New York, takes the cake for the most expensive rental market. If you can make it there, you can… Zumper just released its October [rent report](, and NYC comes in at #1 with a $3,860/month median for a one-bedroom unit. At $3,060, Boston unseats San Francisco for the #2 spot. This doesn’t render the place where you left your heart inexpensive. A typical one-bedroom pad in SF still commands $3,020. Some Good News for the Rest of Us - For the first time in two years, the median price for one- and two-bedroom apartments decreased. - Nationally, a one-bedroom sets you back $1,491 a month (down 0.8% from September), while a two-bedroom costs $1,832 (down 0.7%). - Median rent rose in only 20 of the 100 cities Zumper monitors. - Year over year, the national median rent is up 9.2%, the first time in a year it hasn’t been a double-digit increase. The cheapest rent among the top 100: Akron, Ohio. You can score a one-bedroom there for $650 (that’s flat month to month and year over year) or a two-bedroom for $880 (that’s flat monthly, but up 15.8% annually). Brought to you by [The Spill]( [Our Best Stock Pick Every Day]( Stop wasting time scouring the internet for stock picks. Get daily rankings and expert analysis of popular stocks and rare finds – including our top pick – directly to your inbox when you sign up for The Spill. [Sign up today.]( Investing Another Reason to Love This Big Bank Stock Key Takeaways: - We have a love-hate relationship with big banks, given their refusal to “return cash” to everyday account holders. - That said, we generally love their stocks, but not only because they “return cash” to shareholders. - There’s a big difference between banks such as JPMorgan Chase and the fintech companies posing as disruptors. Last month, [we made the love-hate case for big banks](. Love because they’re rolling in net interest income dough thanks to rising interest rates. Hate because they refuse to hike savings account rates to more than a couple tenths of a percent. But the bullish big bank narrative goes beyond interest rates. Disruption Doesn’t Always Require Disruptors When Uber (UBER) – see The Juice’s [bullish thoughts on the stock here]( – disrupted the taxi industry, it was taking aim at a stagnant and relatively unhealthy space. It wasn’t as if taxi companies had the vision, let alone wherewithal, to take things digital. There was no innovation happening, so Uber stepped in. Same for Amazon.com (AMZN) when it punked bookstores, then brick-and-mortar retail across the board. The companies Amazon hurt were asleep at the wheel, in financial trouble, or both. We can keep going. Apple (AAPL) trounced BlackBerry (BB) because the latter didn’t understand apps. Alphabet (GOOG, GOOGL) encroached on Microsoft (MSFT)’s territory because, under former CEO Steve Ballmer, Microsoft failed to innovate. Google Docs came along in 2006 and introduced incredible features MS Word didn’t have, such as in-document collaborative editing we take for granted today. JPMorgan Chase Doesn’t Have Either Problem While taxis, bookstores, brick-and-mortar retail, BlackBerry, and Microsoft had one or both of these problems, the second-most searched big bank stock in The Juice’s proprietary Trackstar database has neither. JPMorgan Chase (JPM) can and is innovating. Plus, it’s flush with cash. CEO Jamie Dimon says the company is spending more than $12 billion annually on technology. The fintech companies attempting to disrupt the banking industry with every personal financial offering under the sun can’t compare. As an investor, you’re doing little more than speculating with stocks such as SoFi Technologies (SOFI) and Rocket Companies (RKT). They don’t operate from positions of financial strength. And they’re looking to disrupt spaces that aren’t necessarily ripe for disruption. So why buy them? Stick with Uber or even Airbnb (ABNB) – true innovators with formidable disruptive growth stories. These are high-risk/high-reward speculative plays. Which brings us back to rent. JPM is investing some of its cash into a full-service platform for landlords. [Landlord] Source: [JPMorgan]( Roughly 78% of the nation’s 12 million small landlords still collect rent via paper check or money order. JPMorgan’s platform not only facilitates rent collection, it helps property owners screen tenants, do market research, and create leases, among other services. A space in serious need of disruption that doesn’t necessarily require a Silicon Valley disruptor. [Power Your Portfolio with Alternative Investments]( Cryptos… commodities… real estate… startups… They can help you make a fortune. But it’s hard to figure out which to invest in. That’s why we’re launching [The Alt]( – a free newsletter focused on these and other alternative assets. Each issue will show you the latest trends, ideas, and discoveries happening outside of the mainstream. Ready to learn how to take your investments to the next level? [Click here to sign up for The Alt**]( **By clicking the link you are automatically subscribing to The Alt newsletter. Unsubscribing is easy. Full disclosures found [here](. The Bottom Line: We’re not sure if SOFI or RKT plans to mediate the landlord-renter relationship. Our larger point is that it probably won’t matter much if and when they do. JPMorgan isn’t Barnes & Noble, BlackBerry, or Microsoft. The bank has about $1.5 trillion in cash on hand and it’s using it to innovate. So it understands and is ready to fight back against threats to its core businesses (the areas the SOFIs and Rockets of the world are already going after). Plus, it’s expanding from its core, entering areas where it can basically disrupt itself. Paper checks are going away because most people only use them to pay rent? Great, we’ll develop a solution there, leveraging the relationships we already have with landlords and tenants as small businesses and consumers. And while JPMorgan doesn’t return cash to consumers via savings account interest, it returns cash to shareholders with an impressive dividend. JPM pays a $4.00 annual dividend that it has increased for the last 10 years. And, with a solid [payout ratio]( of 31%, it has the ability to keep paying and raising its dividend. In future editions of The Juice, we’ll look deeper at JPM and other big banks to see how else they’re innovating. We’ll also look to spaces in need of disruption where the established players, unlike big banks, aren’t getting the job done. 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