JP Morgan Global Finance Behavioral Questions

What are the three top stocks to buy now? Why?

Alibaba Stock Veeva Systems Stock Shopify Stock

What impact do interest rates have on a country's exchange rate?

Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise

What can you tell me about quantitative easing in Europe?

These asset purchases, also known as quantitative easing or QE, support economic growth across the euro area and help us return to inflation levels below, but close to, 2%. The European Central Bank buys bonds from banks. This increases the price of these bonds and creates money in the banking system.

What was J.P. Morgan's price/earnings ratio in the past quarter?

$13.16

Where did the oil price close yesterday?

$43.36

What is the current yield on a 10 yr Treasury bond?

.76%

What's wrong with the UK economy?

1. Low economic growth and in particular stagnant real wage growth 2. Poor productivity growth since 2008 - which affects long-term growth prospects. 3. Uncertainty from Brexit and likely costs to trade from new custom arrangements. Manufacturing sector 4. State of the housing market - expensive prices and rents are contributing to intergenerational inequality. Relative poverty and inequality 5. Cost-push inflation which is contributing to a fall in disposable income. (though better in 2019)

Where's the S&P trading?

3,426

Where do you see the banking industry in 50 years time?

Block Chain and more electronic development within information technology that investment banks such as JP Morgan could potentially adopt

What are the biggest regulatory threats faced by J.P. Morgan?

If the democratic party takes the house this election year, we can predict that Biden's proposed tax bill will have a profound effect on wallstreet and all banks across the United States. More environmental regulation, financial regulation, and higher taxes would lead to JP Morgan potentially taking a hit in their revenues and in their overall firm's profitability ratios.

What's the connection between interest rates and equity prices?

When interest rates are rising, both businesses and consumers will cut back on spending. This will cause earnings to fall and stock prices to drop. On the other hand, when interest rates have fallen significantly, consumers and businesses will increase spending, causing stock prices to rise

Where do you see the interest rate on US 10 year treasury bonds going?

staying low during the time of the corona virus while steadily rising as the US and global economy recovers from the financial crash that occurred in March of this year