Behavioral Finance at Jpmorgan

7541 WordsOct 30, 201231 Pages
N9-207-084 JANUARY 18, 2007 MALCOLM BAKER ALDO SESIA JR. Behavioral Finance at JPMorgan Behavioral finance is the study of how investors make decisions—and how these decisions affect stock prices and broad market movements. Investors are human, and humans aren’t perfectly rational. When they buy on emotion, they not only jeopardize their own investment plans, but also create opportunities for others in the market.1 In the three years since a 2003 launch in the United States, JPMorgan’s behavioral finance products had attracted new assets at a rapid pace. The Asset Management unit at JPMorgan had been a pioneer in what it termed “Behavioral Investing.” It had over a decade of experience since 1992 when it offered an initial retail…show more content…
Also, under the JPMorgan brand was the Asset & Wealth Management segment described below. Under the JPMorgan Chase brand, Treasury & Securities Services delivered payment, collection, liquidity and investment, trade finance, commercial card and information solutions to clients. Clients included corporations, financial services institutions, middle market companies, small business, and governments and municipalities. And under the Chase brand, the Commercial Bank had 25,000 clients and provided, through itself or by partnering with other JPMorgan Chase units, lending, treasury services, investment banking and investment management to corporations, municipalities, financial institutions and non-profit entities with annual revenues which typically ranged from $10 million to $2 billion. Card Services with more than 110 million credit cards in circulation was one of the largest credit card issuers in the U.S. Retail Financial Services provided consumers and small business owners with banking services and products, including checking and savings accounts, credit, certificates of deposits, home and auto loans, insurance, and cash management. The Asset & Wealth Management Segment The Asset & Wealth Management segment provided investment and wealth management services for institutions and individuals. The group managed clients’ assets through three key business units: the Private Bank, focusing on wealth management for the most affluent

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