Bank of America: Discount Valuation Ahead In 2023


  • Bank of America’s stock declined 14% in December.
  • The central bank raised interest rates again this month, adding pressure on bank stocks.
  • Higher interest rates and inflation are going to be a formidable headwind to bank valuations going forward.

Bank of America Plaza


Bank of America Corporation (NYSE:BAC) suffered a significant valuation cut in December, causing the bank’s stock price to fall 14% just this month.

However, as economic risks and interest rate headwinds increase into 2023, I believe investors should avoid buying the

Interest Rates

Interest Rates (

Net Charge-Offs

Net Charge-Offs (Bank Of America Corp)

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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