Best Stocks to Buy Under Trump: JPMorgan Chase (JPM)
Financial stocks have been on a tear since Election Day. In November, the sector was fueled by the election of Donald Trump and the hopes of looser regulations that would allow for more loans and more profits in the New Year. Then, in December, an interest rate increase by the Federal Reserve gave financials another leg up on the hopes of higher interest margins.
If you are interested in banks stocks at all after these events (and you should be), then you need to have JPMorgan Chase & Co. (NYSE:JPM) at the front of your list. It’s the largest U.S. bank by assets, and while it’s no stranger to scandals, it probably has the best reputation right now among the big banks after the Wells Fargo & Co (NYSE:WFC) scandal in 2016.
CEO Jamie Dimon has close ties to Trump and the GOP, recently joining a policy forum to advise the incoming administration. He was even rumored as a potential Treasury secretary before Trump named Steven Mnuchin as his pick.
And politics aside, the biggest bullish factor is simply the numbers; JPMorgan is riding seven consecutive earnings beats, proving this is not a stock that is simply benefiting from a short-lived pop in pro-bank sentiment. With higher rates and a more favorable regulatory environment under President Trump, a well-run mega-bank like JPM is a must-own in 2017.