The concern as Q2 earnings season approaches is that earnings might be peaking as trading activity slows and interest rates remain stubbornly low. That doesn’t exactly indicate booming times for banks’ trading businesses, most of which saw a major benefit from Covid-associated volatility until recently. This could go especially for big banks with major consumer-facing businesses like credit cards and home mortgages. Also, the big banks last month passed the Fed’s “stress test” with flying colors, allowing many of them to raise dividends and potentially buy back shares. Investors should probably look at it the same way, both for JPM and other big banks.

Source: Forbes July 12, 2021 15:45 UTC