Mr. Dimon was right. JP Morgan is “moving on.” The question is whether investors in this 529 Plan, and other clients whose assets are managed by this bank, are doing the same. The massive loss suffered by the bank is yet another indication of the inability of this huge institution (or anyone else) to predict the direction of the markets. Yet, the entire securities industry is premised on the false assumption that its members can add value by stock picking, market timing, and fund-manager picking.The real skill of these “wealth managers” lies in their ability to convince you they have an expertise that doesn’t exist. This latest debacle is one more example demonstrating the irrefutable fact that these investment gurus are emperors with no clothes, representing a significant, little-understood peril to your financial security.
This loss by JP Morgan is another indication that the big banks do not care about the individual investor. I cannot believe that this could happen four short years after the 2008-9 crisis. The large financial institutions are only interested in their own profit, whether you win or lose is of no consequence to them.
Please comment or call to discuss how this affects you and your financial future.
- Is JP Morgan’s $2 Billion Loss a Mountain or a Molehill? (volokh.com)
- Former Citi Chairman: JP Morgan’s Trading Disaster ‘Could Happen To Anyone’ (businessinsider.com)
- JP Morgan hit with lawsuit over loss (news.com.au)