Here we go again: another round of doom and gloom as the markets swoon. The finger is being pointed at China for their volatile stock exchange and circuit breakers stopping trading there. Some speculate that it is a sign of China slowing down. Whatever. The market was volatile back in October 2014. It was volatile in August 2015. It was volatile in mid-December 2015. And it’s volatile now. J.P. Morgan released an informative little “Guide to the Markets” at the end of the year. Yes, the same J.P. Morgan that I took vast amounts of clippings from the CEO’s letter in the 2014 annual report. But that is neither here nor there. Here are some slides I found interesting. Perhaps it will provide some perspective on all this doom and gloom prevailing in the financial media.
I was reading through the J.P. Morgan (JPM) 2014 Annual Report and Jamie Dimon’s letter to shareholders was rather interesting. I ended up highlighting a bunch of things and wrote a bunch of notes along the columns. JPM has seen solid tangible book value and diluted earnings per share growth over the past 10 years but haven’t seen much movement in the stock price – Dimon thinks he knows why. An interesting fact was how JPM went through the 2008 financial crisis – the answer may shock you. I warn you right now though, this is a long and arduous post – more for my own interest than you, the reader. If you don’t have the slightest interest in reading snippets from the JPM annual report, I suggest you read no further as it will probably just bore you to tears. With that said: here are some random musings from the JPM 2014 Annual Report.