over at Goldman's 36th annual financial services conference underway in New York City. You've seen great content from there over the past day or so. Leslie Picker is there now joined exclusively by Blackstone President and COO Jonathan Gray.Perfect timing as we're about to hear from the Fed. Leslie, over to you. >> Perfect timing indeed.Kelly. John, thank you so much for joining us. As Kelly mentioned, it's a great day to have you and get your perspective really on the macro.I'm just curious what you're see ...

Macro Environment - The macro environment is currently benign, with stocks at a record high and the economy stable, recession is not expected [1] - Earnings growth has been good and the tariff situation has generally abated [1] - The distress ratio is under 5%, and the amount of bank loans trading under 80 is 4% [2] - Inflation has clearly come down, with ongoing debate about whether it will settle at 2% or 3% [3] Company Performance & Investment Strategy - The company manages $100 billion of capital and invests in hundreds of companies, observing good earnings across the board [2] - The company is not seeing major challenges in pricing, despite tariffs, particularly in the areas where it invests [4][5] - The market has largely absorbed current tariff levels without significant inflationary impact [6] - The company focuses on picking good businesses and credits, rather than relying heavily on maintenance covenants [11][12] Interest Rates & Market Outlook - The forward curve suggests five rate cuts over the next year, though the company considers this potentially aggressive [7] - Long rates, particularly the 10-year and 30-year rates, are key considerations given the size of the deficit [8] - The market is digesting the cost of capital, and current levels are not considered worrisome [8]

Core Viewpoint - JPMorgan Chase continues to demonstrate its strength in the financial services industry, delivering impressive returns for long-term investors, with significant revenue and earnings growth reported for Q2 2025 [1][2]. Financial Performance - JPMorgan Chase reported a total return of 253% over the past five years, turning an initial investment of $1,000 into $3,530 as of July 31 [4]. - The diluted earnings per share for Q2 2025 were 280% higher than in the same period of 2020, showcasing the company's resilience amid macroeconomic challenges [6]. Market Environment - The company has successfully navigated a dynamic macro environment characterized by fluctuating interest rates, supply chain bottlenecks, inflationary pressures, and tariff uncertainties [5][6]. - Interest rates were low post-COVID-19 pandemic but have been rising rapidly in 2022, with expectations of cuts by the Federal Reserve before the year ends [5]. Valuation Concerns - Despite its strong performance, JPMorgan Chase's stock is currently trading at a price-to-book (P/B) ratio of over 2.4, which is a 92% premium compared to five years ago and represents the highest P/B multiple in two decades [7][8]. - Given the steep valuation, future returns may not match the past performance, indicating that it may not be a smart buy at this time [8].

Financial Data and Key Metrics Changes - The company reported revenue of $2 billion for Q2 2025, an increase of over 9% driven by unit volume increases in both new and used RVs exceeding 20% [28] - Adjusted EBITDA for the quarter was $142.2 million compared to $105.6 million in the previous year [29] - SG&A as a percentage of gross profit improved by 276 basis points year over year [29] Business Line Data and Key Metrics Changes - The company set a record selling 45,000 RV units in the quarter, with finance and insurance revenue reaching $200 million, the highest ever [6][28] - Gross margins exceeded 30%, indicating growth was not driven by heavy discounting [11] - The company achieved over 14% market share of all new and used RVs registered in North America year to date [26] Market Data and Key Metrics Changes - Same store unit growth trends showed high teens growth in used RV sales and high single digits in new RV sales year over year as of July [25] - The company expects a small bump in the new RV market in 2026, projecting an increase of 15,000 to 20,000 units [13] Company Strategy and Development Direction - The company is focused on building a customer ecosystem through various services, including finance, insurance, and service offerings [7][12] - There is a commitment to continue selling affordable units to build customer lifetime value and increase transaction frequency [12] - The company is exploring acquisitions and investments to grow its Good Sam business, which reported record revenue [21] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating a challenging macro environment, stating that 2025 is expected to be tougher than 2024 due to tariffs and interest rates [24] - The company anticipates double-digit growth in used RV sales moving forward [15] - Management is optimistic about the scalability of their used RV supply chain and expects continued growth in this segment [27] Other Important Information - The company ended the quarter with approximately $118 million in cash and has paid down $75 million of long-term debt since October [30] - The balance sheet is described as the strongest ever, with significant inventory and real estate holdings [20] Q&A Session Summary Question: ASPs and Competitor Pricing - Management views ASP weakness as an opportunity to grow the customer base rather than a problem, focusing on profitability rather than competitor pricing [33][34] Question: Used Gross Profit Margin Sustainability - Management expects used gross profit margins to remain in the range of 19% to 19.5% for the back half of the year [39] Question: Changes in Pricing Expectations - Management anticipates a continued decline in new RV pricing year over year, but expects seasonal improvements in ASPs [58][60] Question: Trade-in Cycle and Customer Retention - The company emphasizes multiple customer touchpoints post-purchase to enhance retention and upsell opportunities [94][96] Question: M&A Activity - Management clarified that they are not on pause for M&A but are being more thoughtful about capital allocation while looking for opportunities [73] Question: Impact of Tariffs on Pricing - Management indicated that any increase in new pricing could lead to margin expansion due to their contract manufacturing advantages [81]