Bank of America: Why Fearmongering From Latest Earnings Is Likely Exaggerated


  • Fears of net interest income peaking and delinquencies rising appear to be less of an issue for long-term holders.
  • Investors tend to fight the last war when it comes to recessions and this often has bad consequences on returns.
  • Bank of America appears to be in a very good position to improve its return on equity, without taking too much risk.
Bank of America Profit Increase

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Bank of America Corporation (NYSE:BAC) and the banking sector more broadly have been getting more cautionary ratings as the risk of a recession in the coming months is getting priced in.

Although banks tend to perform poorly during recessions as

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.

Additional disclosure: Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author’s opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies’ SEC filings. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice.

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