Inside Wall Street: JP Morgan’s $3.4B Loss and What’s Next for Earnings Season

Take a look at this week’s Navellier Market Buzz!

By Louis Navellier, Editor, Growth Investor Oct 20, 2025, 4:30 pm EDT October 20, 2025

Last week marked the beginning of the third-quarter earnings season. And as usual, the big banks came out first.

While the results looked strong on the surface, in several of these earnings reports, banks posted loan loss reserves that were bigger than expected.

Loan loss reserves are funds set aside to cover potential losses from loans that may not be repaid. One of the biggest losses was JPMorgan & Co. (JPM), which increased its loan loss reserves to $3.4 billion, the most in five years.

Of that, $170 million was due to the bankruptcy of a subprime auto lender, Tricolor Holdings. It’s worth noting that this was a private credit deal, and CEO Jamie Dimon warned, “When you see one cockroach, there’s probably more.”

All of this spooked the market.

So, in this week’s Navellier Market Buzz, I talked more about the big banks and why I won’t recommend them. I also did a deep dive into the private credit issue, explained why gold is still in high demand and gave a preview of several earnings reports coming out this week.

Click the image below to watch now.

If you want to see more of my videos, subscribe to my YouTube channel here.

Have you plugged your stocks into Stock Grader (subscription required) yet? The grades have been updated this week, so click here to see how your stocks are looking.

Focus On What’s Working

For now, you don’t need to worry about the banking crisis if you don’t own bank stocks. Treasury yields are falling, which means that the Federal Reserve is going to be cutting interest rates at the next Federal Open Market Committee (FOMC) meeting next Wednesday, October 29, and probably again in December.

The Fed cannot fight market rates.

For now, it’s important to focus on what’s working, which is what our friends at TradeSmith recently showcased at their Super AI Trading Event.

Simply put, this system identifies the five highest-conviction trades in the market. In rigorous backtests, it showed an accuracy rate of 85%, even through bull and bear markets.

As someone who’s big on numbers, that kind of accuracy is impressive.

This kind of tech is something that only elite hedge funds would have access to. And now, so can you.

But you’ll want to hurry, because the replay will be taken down tomorrow at midnight.

Click here to watch the replay while you still can.

Sincerely,