|By Nathan Young|
Bank of America is a large bank that works on the retail side, as well as investing and large banking side of the financial world. Bank of America is certainly to have the presence felt in almost every part of banking. We as retail finance people know them for credit card and traditional brick and mortar buildings. Also, people may choose to use them for investing and other retirement activities. There are many different avenues you could take a brief overview of a financial company this large, but for this, we’ll try to keep it as general as possible.
For Bank of America, let us take this from a detailed technical review. To go deep into the financials would take a significant amount of time. Taking a look at the monthly chart, we can see that $17.75-$18 level of resistance has been broken and there is a strong push to the upside. This should not be a huge surprise, as it should begin to fill the large downfall that was the financial crisis of 2008. In this spot, you could look to use Fib Retracement tools to find a spot for resistance. Looking in the past, there is not a clear level of resistance for a little while, possibly around the $39, but until then, this stock has quite a bit of room to run from a technical standpoint.
Taking a look at the company’s latest 10-K filing, we can view risks investors should take note of. Being a large financial institution, there are many risks that affect all sectors of the company, one being a liquidity risk. In order to avoid having a problem with liquidity, the company has to have access to the capital markets. If they are unable to access the capital markets, continue to maintain deposits, or borrowing cost increase, the company’s liquidity and competitive position will be negatively affected. Also, being a large bank, investors should be aware of the credit rating of the company. If an investor wants to ensure their funds are safe and the investments are safe, they should ensure that Bank of American maintains the highest credit rating. If that begins to fall, research to see if there is an underlying issue that may not be obvious.
Having a position in the financial sector is good for a well balanced portfolio. Bank of America appears to have room to run, but it would be wise to compare them to others in the same industry. Compare ratios and numbers to see which one provides the balance of value for your money. As with any investment, be sure to consult a professional to ensure your financial goals are being met.
|This article from Macroaxis published on 12 of December did not affect price variability. The overall trading delta when the story was published to current price is 40.38% .|