Rising interest rates cause JPM's Treasury bond portfolio to lose value, forcing disclosure of balance sheet damage and resulting in earnings losses.

JPMorgan stock, look at this slight downward trend. I will tell you what happens, in my opinion. That is, we are raising interest rates. We are still in an environment where interest rates are rising, although I believe the likelihood of them raising rates when the matter is discussed this month is slim.

But they were raising interest rates, and they are now at their highest levels since the early 2000s. What does that mean? When interest rates rise, bond prices fall, and banks like JPMorgan Chase, Wells Fargo, and Bank of America all have Treasury bonds on their balance sheets.

When they own treasury bonds and their value decreases, they are forced to disclose the damage to their balance sheets when announcing their results. She is negatively affected.

So, I think you will see some losses when JPMorgan and other banks start announcing their results, and that will not be good for the banking sector.