SocGen's Payouts Approach Is ‘Break From Past,' JPMorgan Says
The outlook of higher investor payouts from Societe Generale SA sets the shares up for strong gains, JPMorgan Chase & Co. said.
The promise, given earlier this month, is a 'significant break from the past,' analysts including Delphine Lee wrote in a note Tuesday. They upgraded the recommendation on the French bank to overweight and boosted its price target by 59%.
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Yahoo
an hour ago
- Yahoo
Bold Prediction: 2 Bank Stocks That Will Be Worth More Than JPMorgan Chase 20 Years From Now
JPMorgan Chase is the largest bank by market capitalization in the United States. Capital One has grown impressively, and has superior margins and some big potential catalysts. SoFi has massive potential to grow and monetize its customer base. 10 stocks we like better than Capital One Financial › JPMorgan Chase (NYSE: JPM) is a massive financial institution with more assets than any other U.S. bank and an $804 billion market cap. To be perfectly clear, it is a remarkable business with fantastic leadership. Having said that, while I think JPMorgan Chase will continue to grow over the coming years, I don't necessarily think it will be on top of the industry forever. While there's no way to know what the banking industry or U.S. economy will look like in a couple of decades, there are some companies that have massive opportunities and the potential to grow rapidly. I realize this is a bold prediction. There's a lot that needs to go right for any other bank stock to get close to JPMorgan Chase's market cap. But if we're looking at a time frame of 20 years, these two have a better chance than many experts think. As of this writing, Capital One (NYSE: COF) has a $135 billion market cap, so it would have to outpace JPMorgan Chase by about 500% to overtake it. But in a 20-year period, that's certainly within the realm of possibilities. For one thing, Capital One doesn't necessarily need to grow its business to the size of JPMorgan Chase. Because of its credit card and auto lending focus, Capital One has far better net-interest margins. The bank has done an excellent job of innovating and is the third-largest player in the credit card industry with about $850 billion in credit card purchase volume last year. But after its recent acquisition of Discover, it has the number one share in credit card loans. Over the past decade alone, Capital One's credit card spending volume has more than tripled, so there's excellent growth momentum here. Furthermore, Capital One has about $470 billion in total deposits, about one-fourth of what JPMorgan Chase has today. Capital One has done an excellent job of not only modernizing the branch-based banking experience but has also been the first major bank to offer high-yield deposit products to branch customers. I could see its deposit growth outpacing its big-bank competitors over the coming years. Finally, one factor that could help catapult Capital One to the next level is that it is now the only large U.S. consumer-facing bank to have its own payment network. At first, this will be mostly useful to avoid paying companies like Visa and Mastercard interchange fees on its own card products, but over time there could be interesting possibilities to build out the Discover network as a truly competitive alternative to the payment-processing giants. The Capital One prediction is certainly bold, but there's a clear path to get there, especially if the Discover network truly gains traction as a globally competitive payment network. But this next one is admittedly a bit of a stretch. SoFi (NASDAQ: SOFI) has a market cap of about $18.4 billion today, which means that JPMorgan Chase is roughly 44 times as valuable. But if SoFi can keep its momentum going, grow its brand recognition, and continue to build out its ecosystem, it could be a massive long-term winner. Management has said that the goal is to become a top 10 financial institution, which would require it to grow more than 10X from its current asset size, so the bank's leadership team is certainly aiming high. While other personal finance apps aim to do one or two things better than traditional banks, such as offering high-yield savings accounts or a stock-trading platform, SoFi is building a true bank replacement. The ultimate goal is for SoFi to be able to do everything your current bank, brokerage, insurance agent, and other financial services businesses do -- all in one app and better than the legacy providers. The company's growth momentum has been impressive to say the least. Its membership base has tripled over the past three years, and SoFi (which only received a banking charter in 2022) has grown its deposit base from zero to $27 billion. There are several major catalysts that could take SoFi to the next level. The third-party loan platform is one big example that is growing fast. It's where SoFi originates loans on behalf of third-party partners and makes applicant referrals, generating a low-risk stream of fee income from the massive personal loan industry. SoFi's home loan business is another example. Even in a terribly slow real estate market with elevated interest rates, SoFi originated nearly six times the home loan volume in the first quarter than it did two years ago. With Americans sitting on more equity ($35 trillion) and pent-up home-buying demand than ever, this could be a massive opportunity. Cryptocurrency is a recent development that could bring more customers into SoFi's ecosystem. The bank recently announced that not only will it be bringing crypto trading back to its app by the end of the year but will use blockchain technology to facilitate cross-border money transfers quicker and more cost effectively than peers, and this is a $93 billion market. As a final thought, keep in mind that these are meant to be two bold predictions. There's a lot that would need to go well for either of these companies to overtake JPMorgan Chase's position as the most valuable U.S. bank. It's possible, but it's not especially likely. However, even if JPMorgan Chase remains the largest U.S. bank in two decades, that's OK. These are two well-run banks with massive market opportunities, and I'm quite confident that they'll deliver strong returns for investors over the long term. I own both in my personal stock portfolio and can't wait to watch their next chapters unfold. Before you buy stock in Capital One Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Capital One Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Matt Frankel has positions in Capital One Financial and SoFi Technologies. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy. Bold Prediction: 2 Bank Stocks That Will Be Worth More Than JPMorgan Chase 20 Years From Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 hours ago
- Business Insider
I downsized from a house in Nevada to a 104-square-foot studio outside of Paris. It helped me focus on what matters in life.
In my mid-30s, I still couldn't afford to live alone in the US. I was sharing an 1,800-square-foot, two-bedroom, two-bath house in Nevada with a roommate, spending $3,300 to $5,000 on my monthly bills. As a writer and university adjunct English professor, I earned less than $2,000 a month and cleaned houses in my spare time to cover the rest. This left little time to realize my dream of writing a book. I realized couldn't achieve my goal in the US; the cost of living was simply too high. It was time for a change. I'd spent time in Europe while earning my Master's degree in London. On weekends I'd travel to France with friends and had seen how the cost of living could be much cheaper there. So, when I had the opportunity to continue to teach online and increase my freelance writing work, moving to France felt like the best way to cut costs. In France, my place was smaller but was everything I wanted I moved into an apartment in a small city about 40 minutes by train from Paris. It's everything I wanted, and my rent was cheaper — €650 (about $740), including utilities. I was finally saving money. Plus, it felt like a dream to write on my couch with my neighbor's violet blooming wisteria visible through my white-curtained French windows framed by ancient wooden beams. While my French apartment was certainly smaller — only 104 sq. ft. — than the space I had in the US, the layout was better. Blending the kitchen and living room, the vaulted ceilings enabled a spacious bedroom loft with a skylit window and enough space for a reading chair. While I sacrificed five times the kitchen counter space I had in Nevada, the whole kitchen took me only 10 minutes to clean, saving me hours a week. I slashed my monthly expenses In France, I saved anywhere from $1,700 to $3,200 a month on expenses, and I typically spent $1,600 to $1,800 a month to cover all my living costs, including rent. A lot of my savings came from cheaper rent and no longer having a car. I paid $20 a month to store my car in the US and no longer spent the $475 a month it cost in gas and insurance. If I wanted to go somewhere in France, I used public transportation, which costs about €50 to €80 ($57 to $91) a month. I could afford to slow down and still save on dining out French bakeries offered pain au chocolat (chocolate croissants) for €1.80 ($2.09), while delicious dinners like boeuf bourguignon ranged from €12 to €17 ($13 to $18), a bargain next to my favorite $25 twelve-inch pizza in Nevada. A glass of house wine back home could cost $12 to $15. Most brasseries, a sophisticated version of a cheap bar, have happy hours starting at 5 p.m., where a glass of wine often cost €5 ($5.80). My life naturally slowed down as I delighted in spending hours with friends unbothered, knowing the evening would only dent my pocket a little. I was finally free to finish my book Even though I worked remotely, I slowed down my lifestyle by syncing my rhythm with the numerous French holidays when I could, and scaled down to 30 hours a week to add time to work on my book. In France, the pressure to grind had less of a draw. I saved more than time and money by embracing the French lifestyle of "joie de vivre," which encourages enjoyment over expense. The shift in mindset empowered me to finally focus on self-enrichment and my creative goals rather than chasing a lavish American lifestyle. The lack of financial pressure lowered my stress and granted me the extra time I needed to complete the final draft of my book.
Forbes
2 hours ago
- Forbes
Our 8% Dividend Playbook For The $36-Trillion Debt Panic
The words "Government Debt" with hundred dollar bills in the background. 'Those are some crazy numbers.' An old friend had messaged me, and that line caught my attention. As it turned out, he had 36 trillion numbers in mind: the national debt, in other words. That is a pretty striking figure, and it's fair to ask how the country's debt could go from a trillion dollars back in 1981 to 36 times that today. 'Very irresponsible, imo,' my friend wrote. This sounds like a reasonable response, and many people think this way. But the problem here, from an investment perspective, is that most people look at the debt on its own, without considering the many other factors we're going to delve into today. My quick take: The rising US government debt load is not a good reason to avoid stocks, or, in our case, the 8%+ yielding closed-end funds (CEFs) that hold our favorite stocks. I'm talking about funds holding strong blue chips that form the backbone of the country's economy, like Visa (V), JPMorgan Chase & Co. (JPM) and NVIDIA (NVDA). Beyond Alarmist Debt Headlines Now it is absolutely true that too much debt is unsustainable, and the US government isn't accountable for this debt—we taxpayers are. But there's more to the story than this. In 2017, total government debt hit $20 trillion. That, by the way, was the last time I wrote in-depth on this topic. I still feel the same way I did then: that the US government is actually financially healthier than the average American. That's because then, as now, people tended to look at the debt in isolation (a common mistake!). But the US government has plenty of tools it can use—and trends working in its favor—that make it easier to manage its debt than many people think. Let's start with a key number: the amount of revenue the government collects in a year through taxes and other fees. Today, as in 2017, about 18% of US GDP goes to the federal government. That's $5.2 trillion, at the current size of the US economy. Looked at another way, if Uncle Sam were to divert all of that revenue to paying off the debt (which is impossible, obviously, but stick with me for a second), he'd do so in about six-and-a-half years. Here's the key point, though: That six-and-a-half years is only slightly higher than the six years it would've taken in 2017. And let's not forget that we had a pandemic in there, which caused a big spike in public debt. So, viewed that way, government debt has remained about as manageable as it was eight years ago, and it would likely be more manageable if COVID hadn't come along. Now let's go one step further and stack up debt and GDP growth: Debt/GDP Chart Both federal debt and GDP were growing at almost the same rate before the pandemic, which, as we just discussed, caused a bump in debt. And, of course, GDP took a hit then, too, with the economy in lockdown. As a result, GDP has grown about 55% in the last eight years or so, while total debt has grown about 80%. Obviously, this means America's debt-to-income ratio is worse than it was before the pandemic. But that's not because of a structural issue. We can point at the pandemic as the main cause here, in this case. Still, a one-time hit could be trouble in the long run, right? Sure, but look at this chart. Debt/GDP 2017 The extra government debt due to the COVID-19 crisis looks bad because the numbers are huge, but if we compare it to the bump, and continued accelerated rise, in indebtedness sparked by the 2008/2009 financial crisis, the 2020 debt increase is rather small, as you can see below. Debt Crisis Before 2008, the ratio of US public debt to GDP was around 35%, and in less than five years, it doubled to 70%, where it remained until the pandemic, after which it went above 100% before falling to 96%, where it is now. On a relative basis, the jump in 2008 was clearly worse than in 2020. Yet America survived just fine. So there's no reason to worry, unless and until this chart changes direction. Labor Productivity Above is the real story: labor productivity. It's risen by a third since 2007, meaning Americans now produce about $1.33 in value for every dollar they produced back in 2007. And note how that's been a pretty stable line upwards? America keeps producing more effectively and efficiently: This is progress, growth and prosperity. And now we have AI, which is likely to give productivity another boost. This also explains why the S&P 500 has delivered 10.4% annualized returns over the last two decades, in line with the 10.3% annualized returns it's delivered over the last century. And, yes, during that time, the federal debt grew, as did the US government's income, thanks to higher US productivity producing higher GDP. So if you're thinking of cutting back on your US holdings due to the debt, remember these three things: Instead, now is the time to boost our holdings in the US, and doing so through CEFs yielding 8%+ is hands-down the best way to do it. With CEFs, we get exposure to strong blue chips like the ones I mentioned earlier, often at a discount, since these funds' market prices can—and often do—trade for less than the value of their portfolios. That's our 'discount to NAV' in CEF-speak. Big dividends and big discounts from S&P 500 stocks. Try getting that from an index fund or by buying these stocks 'direct.' It's just not possible. And any fear—and hence bigger discounts—caused by overwrought debt worries just makes our opportunity even sweeter. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
