Bank Of America: This Time Will Be Different, Seriously
*Bank of America's stock has significantly underperformed the broader market so far in 2020.
*The bank recently reported Q1 2020 results and, as expected, earnings were under pressure due to the impact that COVID-19 has had on the economy.
*In a broader context, many experts believe that we are already in a recession, which will likely have a negative impact on the bank's stock in the near term.
*However, I believe that it will be a different story for Bank of America this time around - the bank is better positioned today than it was before the last recession (i.e., the global financial crisis of 2008/2009).
*I'm long Bank of America, and I have no plans to reduce my overweight position in the near future.
Bank of America's ($BAC) stock has significantly underperformed the broader market so far in 2020.
The COVID-19 related concerns, in addition to the deteriorating interest rate environment, has wrecked serious havoc in the financial sector. I believe that the stock market will face further downward pressure as more companies report on the financial impact of the COVID-19 spread but, in my opinion, BofA is well-positioned to weather the storm. As such, I believe that BofA's stock at current levels will turn out to be a great long-term buying opportunity.
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