JPMorgan: Start Accumulating The Preferred For Income, Hold The Common At 3.2x Book

JPMorgan is operating at near peak conditions, with Q2 ROTCE at ~23% and record Markets and Investment Banking revenue. JPM's valuation is historically elevated at ~3.2x tangible book and ~14.8x forward PE, making the common stock a Hold due to multiple compression risk. Preferred shares (JPM.PR.M, JPM.PR.K, JPM.PR.J, JPM.PR.L) offer ~6.4% yields and discounted entry, but rate risk limits immediate upside.