Markets & Situational Questions

What is one major asset class you're following closely?

One asset class I’ve been following is energy, particularly oil. What’s interesting right now is how sensitive oil prices are to geopolitical risk—like the recent Iran conflict, where prices spiked on supply concerns and have stayed elevated relative to pre-conflict levels.

The reason I find this important is that oil feeds directly into inflation, which then impacts Fed policy and interest rates. So even if growth is strong, higher energy prices can delay rate cuts and affect valuations across markets.

For private banking clients, energy exposure can act as a hedge against inflation and geopolitical risk, but it also introduces volatility. My view is that it’s less about making directional bets on oil and more about understanding how it influences the broader macro environment

What's the Fed Funds rate right now? Do you think it'll stay there for a long time?

THEME: Higher for longer

• The Fed funds rate is currently around 3.5% to 3.75% in March and markets have become less confident that cuts will come quickly because inflation risks remain sticky, especially with geopolitical and energy-price uncertainty
  
  Impact on private banking clients

• Higher rates make cash and short-duration fixed income more attractive, but they also pressure equity valuations and make borrowing more expensive. For clients, this creates planning questions: should they lock in yield, extend duration gradually, refinance later, or use securities-based lending more carefully?

• My view is that clients should not sit entirely in cash just because yields are attractive. I’d want to help them lock in quality income while staying diversified, because if rates eventually fall, reinvestment risk becomes real.”

When we talk about the stock market, what are we really referring to?

Broad term that encompasses a number of exchanges both domestically and around the world.

Most are referring to the S&P 500, the Dow Jones, or the Nasdaq domestically.

Internationally, they may be referring to the FTSE (London Stock Exchange), TSX (Toronto stock exchange), or Nikkei (Tokyo stock exchange).

What do you think is driving the stock market right now?

A tug between big tech earnings and geopolitical risk

AI Infrastructure Boom: Investors are looking for tangible returns on the roughly $700 billion in capital being spent on AI infrastructure.

• Semiconductor Surge: Chips have been a massive engine of recent growth; for example, Qualcomm jumped over 12% today on reports of a new OpenAI partnership, though Apple slipped 1.5% on fears of the new competition.

• Durable Fundamentals: Despite high interest rates, corporate profit margins for the S&P 500 reached record highs of around 15% in early April

Energy and Middleeast conflict

• Stalled Peace Talks: Markets opened lower today because expected peace talks between the U.S. and Iran were scrapped over the weekend due to leadership confusion in Tehran.

• Energy Supply Shock: While markets have tried to "price out" the war, the closure of the Strait of Hormuz has caused the largest oil supply disruption in history, keeping Brent Crude prices volatile and weighing on energy-sensitive sectors

Where is oil at right now? What's driving it?

Oil is currently in the mid-$90s per barrel range for WTI, which is elevated compared to earlier in the year.

The main driver right now is geopolitics, particularly tensions in the Middle East, which raised concerns about supply disruptions. Even though prices have come off their peak, they’re still above pre-conflict levels, which is keeping inflation concerns elevated

At the same time, inelastic demand and stable economic growth are supporting prices.

My view is that oil is being driven more by supply-side uncertainty than demand right now, which is why it’s also influencing inflation and Fed expectations

What's the 10-year at and where do you think it will go?

The 10-year is around ~4.3%, and its direction depends mainly on inflation—sticky inflation keeps yields high, while cooling inflation would push them lower.

My view is that yields are likely to stay somewhat elevated in the near term given ongoing inflation concerns, but will soon move lower if Jerome Powell is replaced.

What do you think about credit markets right now?

• Theme: Private credit is growing as non-bank lenders replace banks

• Why it’s attractive: Higher yields and less volatility than public markets

• Key risk: Not fully tested in a downturn—concerns around opacity, leverage, and liquidity

• Client takeaway: Good for income and diversification, but should be a small, carefully selected part of alternatives, not a replacement for traditional fixed income

Follow-ups:

• Systemic risk? Limited, but can create pockets of stress

• Why invest? Higher income + diversification, with tradeoffs in liquidity and transparency

What's one overall trend in markets you're following closely?

-    One theme I’m watching is U.S. equity market concentration. The S&P 500 has become heavily dependent on a small group of mega-cap names, especially AI-related technology. J.P. Morgan’s Guide to the Markets highlights top-10 concentration as a key issue, and recent market commentary shows semiconductors have been a major driver of 2026 gains.

-       The mechanism is simple: strong earnings expectations, AI capex, and investor demand have pushed capital into a narrow set of companies. The risk is that if expectations disappoint, the index itself can be more vulnerable than it looks.

-       For private banking clients, this matters because many think they are diversified by owning the S&P 500, but they may actually have concentrated exposure to the same few names across ETFs, direct stock, and employer equity. My view is not to avoid AI, but to be intentional: diversify across sectors, consider equal-weight or active strategies, and manage single-stock concentration tax-efficiently.

-       Follow-up Q: Why is concentration a problem if the companies are high quality?
High quality does not mean low risk. If valuations already assume perfect execution, even strong companies can underperform if earnings growth slows or rates stay high.

-       Follow-up Q: How would this affect tax strategy?
For clients with big embedded gains in mega-cap stocks, selling all at once may create a large tax bill. Advisors might use staged sales, tax-loss harvesting, charitable giving, donor-advised funds, or exchange funds.

If you were to take advantage of this market trend, how would you do it?

• To take advantage of concentration, I’d stay invested in AI leaders but avoid being overly concentrated

• Then I’d add exposure to areas with more attractive valuations (value, international, equal-weight), where less optimism is priced in

• This creates a better risk-reward: participation if AI continues, upside if the market broadens

• For clients, I’d also gradually diversify concentrated positions tax-efficiently rather than selling all at once

If you could only follow one economic indicator what would it be?

I think generally inflation indicators will have a large affect throughout every asset class because changes in inflation - especially large changes - will change rates and rates in turn will change credit and equity valuations.

So, if you had inflation tick above 2%, you'd then expect the Fed to raise interest rates, rates to rise (in yield terms) across the curve, the curve to likely flatten, equity valuations to potentially decline, and credit to trade down (meaning nominal yields increase).

How do you think about equity valuations right now?

I think equity valuations are elevated overall, but not evenly across the market.

• A small group of large-cap tech and AI-related companies (Microsoft, Nvidia) are trading at higher multiples because of strong earnings expectations, while other areas—like value stocks or international equities—are more reasonably priced.

• So the market looks expensive on the surface, but there’s really a dispersion underneath.

• My view is that valuations are justified in some of the leaders, but they leave less room for error. So it’s important to stay invested, but also be selective and diversified rather than concentrated in a few names.”

Follow ups

Q: What do you mean by “elevated”?

“Higher price-to-earnings ratios compared to historical averages, especially in large-cap growth.”

Q: Are you worried?

“Not necessarily—earnings are still strong—but higher valuations mean the market is more sensitive to changes in growth or interest rates.”

Where do you see gold going? Are there any more commodities that you follow closely?

• I see gold being supported in the near term, but not necessarily a long-term growth driver.

• Gold tends to do well when there’s uncertainty, inflation concerns, or geopolitical risk—all of which are present right now. It’s also influenced by interest rates: if real rates stay high, that can pressure gold, but if rates start to fall, gold could move higher.

• My view is that gold is useful as a diversifier and hedge, especially in volatile environments, but I wouldn’t rely on it for long-term returns compared to equities.
  
  Followups:

• Q: What would make gold go up?

  • Falling interest rates (less return from bonds)

  • Higher inflation expectations

  • Increased geopolitical risk

• Q: What would hurt gold?

  Rising real interest rates

  Strong dollar

  Stable, low-risk environment

What are some alternative asset classes? How are they doing right now?

Alternatives are investments outside of traditional stocks and bonds, often used for diversification, income, or inflation protection.

Common examples:

• Private equity (buying private companies)

• Private credit (non-bank lending)

• Real estate (direct property or RE funds)

• Hedge funds (long/short, macro strategies)

• Commodities (oil, gold, etc.)
  

How are they doing right now?

It’s been a mixed environment depending on the asset class.

1. Private credit: Doing well due to higher interest rates → higher yields

But some concern about credit risk and liquidity

2. Private equity: More challenged. Higher rates → lower valuations + slower deal activity

3. Real estate: Mixed. Pressure from higher borrowing costs, but some sectors (like industrial/data centers) holding up better
   Overall less liquidity

If you had $1,000,000 personally how would you invest it?

Well, I suppose the conventional answer would be in a diversified portfolio of stocks and bonds; probably 60/40. However, what we've seen over the past year is not only bond yields at record low levels, but also them being correlated positively with stocks mitigating the kind of risk off-setting underlying that kind of portfolio construction.

Because of how young I am, I'm not overly worried about a 40% correction in my portfolio at any given time (since I'm not relying on drawing out a certain percent per year). So instead of being quite heavy on bonds, I would probably be 50% S&P 500, 20% emerging market stocks, 10% investment grade bonds, 10% Treasuries, and 10% gold

If someone gave you $1,000,000 and wanted a constant stream of income every year for the foreseeable future, how would you invest it? What would be a reasonable amount per year for them to reliability get?

• 50–60% Fixed Income

  • Investment-grade bonds, Treasuries, some municipals (help reduce taxes if still working)

  • Core source of stable income

• 20–30% Dividend-paying equities

  • Provides income + growth to keep up with inflation

• 10–20% Alternatives

  • Private credit, real estate, or infrastructure for additional yield

• Small cash buffer (5–10%)

  • For liquidity and near-term needs

A reasonable, sustainable withdrawal rate is around 3.5%–4.5% per year.” On $1,000,000 → $35,000–$45,000 per year

Let's say that a client calls you and is very upset about the way the markets have moved against an element of their portfolio. How would you handle this?

• Listen first: Let the client explain concerns and acknowledge their emotions

• Clarify the issue: Identify whether it’s a specific holding or overall market volatility

• Explain what’s happening: Connect performance to market conditions and portfolio strategy. For example, if equities are down during a rate spike or growth scare, that is painful but not surprising, and that risk is why we pair equities with other assets.

• Reinforce the plan: Tie back to long-term goals and risks of reacting emotionally

• Act thoughtfully if needed: Frame any changes as disciplined, not reactive

Let's say the market is moving down quickly - as it did due to COVID in March 2020 - and a client calls wanting to sell everything and move to cash. What do you do?

• Listen: Let the client fully explain what’s worrying them and what they want to do

• Acknowledge: Validate their emotions—sharp market drops are stressful and their reaction is understandable

• Context: Briefly explain what’s driving the selloff and that these types of declines can happen during uncertainty

• Educate: Point out that selling everything now would lock in losses and miss potential recovery

• Reinforce plan: Remind them the portfolio was built for long-term goals and includes diversification for periods like this

• Offer options: Suggest measured steps (e.g., modestly increasing cash or rebalancing) instead of going fully to cash

• Guide decision: Help them make a calm, disciplined decision aligned with their goals, not a reaction to short-term fear

Let's say a client needs help with an esoteric question - outside of your expertise - what should you do?

This is the point where you begin to call on those internal to the firm, or perhaps external, who can provide additional clarity. I would seek to fully flesh out what the client needs to understand, craft my own questions that are perhaps a bit more detailed, then go to an expert with the questions to gain clarity.

I would then relay what I've learned to the client and provide some actionable followup on how we can make whatever they want happen.

Let's say your client wants exposure to alternative asset classes - like private equity funds, hedge funds, Bitcoin, etc. - how would you go about talking to the client about this and taking action on it?

Well, first I would try to walk through with the client the nature of these alternative asset classes. For most of them, they have two attributes that are quite distinct from "traditional" asset classes: they are more illiquid and potentially more volatile.

I would then go over if there are more liquid, less volatile ways we can get them their desired exposure while limiting the downside (like perhaps investing in publicly traded private equity funds, instead of trying to get slotted into new PE funds with their long-term lockups).

If the client is still bullish on getting alternative asset class exposure directly, then I would seek to understand how we can leverage the firm's platform in order to provide this.

Note: Some firms you may be interviewing at - like the large private wealth managers - will have ways that many clients can essentially co-invest in illiquid private vehicles (like hedge funds or private equity funds), which they may even want you to push on clients. So you should always sound open to helping your client get into alternative classes and never dismissive of them.

How do Kevin Warsh’s policies differ from Jerome Powell’s (Trump’s nominee)?

• Policy shift: Warsh wants a more market-driven Fed—shrink the balance sheet, return to a strict 2% inflation target, and rely less on tools like forward guidance and the dot plot.

• Different philosophy: He believes the Fed should “talk less” and let markets set expectations, while focusing only on inflation and employment (not climate, CBDC, etc.).

• Key risk: Could increase market volatility and raise concerns about Fed independence, especially given political pressure for lower rates.

Tie inflation, interest rates, and market growth

Higher inflation pushes rates up and pressures markets, while strong growth supports earnings and equities, and lower rates tend to boost valuations and risk assets.

1. Inflation ↑ → Rates ↑ → markets pressured

• Inflation goes up = prices are rising too fast

• The Fed responds by raising interest rates to slow spending

• Higher rates =

  • Borrowing is more expensive

  • Companies invest less

  • Consumers spend less

Result: stocks and bonds can struggle (“markets pressured”)

2. Growth ↑ → Earnings ↑ → equities ↑

• Growth goes up = economy is strong

• Businesses sell more → earnings increase

• Investors buy stocks because companies are making more money

Result: stock prices go up

3. Rates ↓ → valuations ↑ → risk assets ↑

• Rates go down = money is cheaper

• Investors can’t earn much from bonds/cash

• So they move money into stocks

Also: Lower rates make future profits more valuable (this is valuation)

Result: stocks and other “risk assets” go up

What is your greatest weakness?

• My greatest weakness is my consistency to compare myself to other high achievers. I really developed this coming to college seeing how competitive this school is and I think it really stems from my background as a twin always competing with my brother in every aspect of life.

• In highly competitive environments, I used to compare myself too closely to others, which could take focus away from my own development. I’ve shifted toward measuring progress based on my own performance and preparation, which has helped me stay more confident and consistent.

Tell me about yourself.

• First off, I’d like to thank you for the opportunity to have this conversation with you. My name is Owen Plym, I’m from Charlotte NC, and I am currently a sophomore at UNC -Chapel Hill studying business administration and data science with areas of emphasis in finance and real estate.

• I came to UNC with a strong passion for business particularly from my Mom, who was an entrepreneur in the Charlotte community.

• I casted a wide net my freshmen year fall joining many different clubs with the goal to learn as much as possible. I knew I enjoyed working with others coming to college from previous experiences and it wasn’t until I joined Scale and Coin where I really found wealth management and specifically private banking to be quite interesting. In this society, I was involved in a 10 week pd program where I collaborated with a mentor named Bruna. She was a senior going into private banking that summer and through multiple conversations about future careers, what stuck out most was the extremely client & relationship centric the business is. I felt as if I could really have an impact on others through the work here.

• I did more research and gained experience in a private wealth case competition this past semester and absolutely loved it. My team and I actually won 1^st place it was a great experience. This summer I’m interning at a firm in Charlotte looking to gain even more experience

Why JPM

I’d want to work for JPM for a few reasons.

1. JPM consists of a very competitive yet innovative environment at JPM. Being the industry leader you are, I know I’ll be working alongside likeminded, ambitious, and determined individuals who want to continuously grow. As a twin, I’ve felt this pressure constantly. At the same time, the environment is constantly changing with new tech investments at some 18B this year. To be at a place where I’m at the forefront of whatever is next sounds very exciting

   1. I have loved hearing how specialized and cross functional the bank is. Through the Special Advisory Services Jamie Dimon discussed where you connects clients with internal experts across disciplines: AI, Cybersecurity, Geopolitics, Real estate, Risk strategy. I see this as a very cool and innovative solution to client service in the Private Banking space I’d love to be a part of
      
      

2. Additionally, I’ve reached out to a couple people at JPM’s private bank to hear about their perspectives and thoughts. I spoke to a young man in the private bank and I asked him why he chose to work at JPM. And while they weren’t in the Raleigh office I believe this to be applicable elsewhere. He said something I found very enlightening: at the private bank, you’re treated like family. He said he truly felt a sense of community across all levels of leadership from Managers down to analysts. He said a win for one is a win for all in our group and that is exactly what I’m looking for. If I can be a part of team where I can really develop my skills in areas I’m passionate about, and have everyone backing me encouraging me to do better, I see myself no place else.

   1. I’ve seen this through the American Dream Initiative to expand local economic opportunity. It looks to support 10 million local small businesses thrive now.

Why Private Bank?

• As I touched on earlier, my initial interest came through connecting with upperclassmen for the most part and from there, I started doing my own research into the industry and participated in a case competition recently that my team actually won. The personalization you have with clients is the first part that stood out to me. Being able to work so closely with individuals while building a network makes me feel like the work I’d do has a larger impact.

• The long-term professional development this program offers as I’d work with advisors and specialists to bring in new clients and serve existing clients especially in this new Raleigh market, I think seeing that development is such a cool opportunity to be a part of from the start.

• Also, you work on difficult but interesting problems everyday and because markets move all the time, the job is never boring, always a new challenge to solve.

Share how you see yourself contributing to the culture at JPM and what kind of impact you'd like to make both inside and outside the workplace?

• What really resonates with me about JPM is the idea that every moment matters. I value integrity, accountability, and being someone others can rely on.

• In practice, that means showing up prepared, following through on commitments, and taking ownership of my work—especially in a client-facing environment where trust is everything.

• Outside of work, I also value giving back. I’ve volunteered at the YMCA in Chapel Hill, and I really respect that JPM encourages employees to stay involved in their communities. That’s something I’d want to continue as part of the firm.

Where do you see yourself in 5 years? / How does this role fit your long-term plan?

• In the near term, I want to develop a strong foundation in portfolio construction, wealth planning, and client communication — the core competencies of a great advisor. Within Private Banking, I hope to eventually see myself eventually managing my own book of clients. This program is the right place to build that foundation because of the structured mentorship and the breadth of client situations I'll be exposed to early on.

Explain direct indexing (tax efficient strategy)

Where you buy the individual stocks that make up an index (like the S&P 500) directly, rather than buying a single ETF or mutual fund.

• More control over the portfolio

• Can customize (exclude certain stocks, sectors, ESG preferences)

• Enables tax strategies like tax-loss harvesting

Explain tax-loss harvesting

Investors can sell individual stocks that have dropped in value to realize losses, using those losses to offset capital gains and reduce taxes, even if the overall index is up.

Explain how interest rate changes impact different asset classes

When interest rates RISE

• Bonds ↓
  → Prices fall (especially long-term bonds)

• Growth stocks ↓
  → Future earnings are worth less when rates are higher

• Value/dividend stocks = mixed
  → Less sensitive than growth, but still face pressure

• Cash ↑
  → You earn more from savings, CDs, money markets

• Real assets (real estate, commodities) = depends
  → If rates are rising due to inflation → can hold up better
  → If rates are rising due to slowing growth → more pressure

When interest rates FALL

• Bonds ↑
  → Prices rise (long-term bonds benefit most)

• Stocks ↑ (generally)
  → Lower rates support valuations

• Growth stocks ↑↑
  → Benefit the most (future earnings become more valuable)

• Risk-taking increases
  → Investors move out of cash into stocks and other assets
  
  Inflation-driven rate hikes → worse for markets
  (hurts purchasing power + valuations)

• Growth-driven rate hikes → less negative
  (because earnings are strong)

How does a bank make money?

• Net interest income. Banks take deposits and lend money. Earns the spread between the interest on loans minus the interest it pays on deposits.

• Service and advisory fees essentially for “expertise and access”

How does the private bank make money?

• The Private bank makes money based on the 4 lines of business: lending, investing, banking, and planning.

• Lending to wealthy clients earns interest they must pay for the borrowing of the money

• Investments allow banks to earn fees (revenue) for AUM

• Banking which consists of more everyday services, while also earning the spread between interests and deposits

• Planning which is advisory and fee-based income from tailored financial planning, estate planning, and tax strategies.

Active vs Passive Investing

Active essentially aims beat the market through consistent research and frequent trading

Passive seeks to match market returns using a buy-and-hold approach

Why Raleigh?

I’m drawn to Raleigh because of its

• growth and energy—The triangle a market that’s expanding quickly, especially with tech and new businesses.

• It has a strong sense of community. Between UNC, Duke, and NC State there’s a constant flow of talent and ambition hard to find elsewhere.

• The rapid growth of areas like north hills

• It’s local to me. Family is something I highly value coming from a family of 6. I have a sister graduating in a week who will be working in Raleigh while doing PA school over the next few years, plus I have others in CLT.

What is the current state of the market?

• Resilient but moderating growth:
  The U.S. economy is still growing, with GDP expected around ~2% in 2026. Consumer spending and investment—especially tied to AI—remain strong, but growth has slowed from 2025 highs. CPI increased mainly due to energy prices increasing

• Inflation pressures returning:
  Inflation has picked back up to around ~3.3%, driven by higher energy prices and tariffs. This is creating uncertainty around Fed policy and keeping rates elevated.

• Strong labor market, but mixed signals:
  Unemployment remains low (~4.3%), with low layoffs, but hiring has slowed and companies are focusing more on efficiency and productivity.

• Rising risks and uncertainty:
  Geopolitical tensions (Middle East) and tariffs are pushing up costs and hurting consumer confidence, which has fallen to multi-year lows.