Bank of America (BAC)

JP Morgan (JPM-N) vs Bank of America (BAC-N) – He holds both of these companies. JP Morgan (JPM-N) is a preferred holding for him as its earnings are less volatile of the two. Bank of America (BAC-N) is second on his list, which carries a large amount of “free balances” (client deposits they pay no interest on), which is very interest rate sensitive.

Bank of America BAC-N or Walmart WMT-N. Prefers BOA. Their regulatory, merger and interest rate issues are now lifting. Wealth management operations through Merrill Lynch is growing fast. Capital markets are reasonably healthy.

BAC-N vs. PRU-N. He leans more toward the banks. You are taking on yield curve and interest rate risk with the banks, however. BAC-N is his preference of the two above.

He likes the U.S. banks and will blog on this tomorrow. The banks traded flat for much of 2017, then tested a breakout. He bought BAC and other banks through an ETF. The stock is pulling back at the moment so perhaps wait a little before buying, but the formation of a long base followed by a breakout is very bullish. This usually signals a rotation of money from other assets (such as FAANG stocks) into this group and you will see more and more money flowing in. With rising interest rates, the banks will do well.

Recommended the stock for a long time. Simple story: all the bad stuff is done, massively capitalized, continue reducing costs. Momentum on earnings. They are internationally but they are 10% of the deposits in the US. Great credit card business. 6% owned by Warren Buffet. Everything is there to be a great institution. Real opportunity to see higher prices through organic growth. (Analysts' price target is $34.43)

(A Top Pick March 21/17. Up 40.77%) Continues to be one of his top 10 holdings. The story continues to play out. Tax changes help. Rising interest rates help. The growing US economy helps. Cost cutting helps. This is one that can continue to do very well. It's only trading at about 1.4X BV. It’s traded as high as 3X BV in the past.

He likes financials and US banks, and this is his greatest weighting. He owns Citigroup (C-N), J.P. Morgan (JP-N) and American Express (AE). He likes Bank of America, and thinks it will continue to benefit this year.

(For a 5-year hold?) Pretty well everybody in the sector has done a lot to take costs down, and make investments into digital enterprise. You have the combination of a rising rate environment that will be helpful. Credit quality across the group remains really strong. All this bodes well for the banks. She prefers Citigroup (C-N).

Wouldn't be a buyer at this level. He paid $6+, and it has done very, very well. There is still upside, partially because US interest rates are going up and partially because corporations will do better in the short run with better regulations. His initial sell target is $38+. He is happy to hold this.

Earnings are coming out on Thursday of next week. It closed at $30.66, and his model price is $32.16. He can see this racing up to $32.48. Thinks there is going to be a major dividend increase. He would be very disappointed if they don't at least double their dividend. Next year they are going to earn $2.35.

Bank of America (BAC-N), Boeing (BA-N) or Ali Baba (BABA-N)? His choice would definitely be Bank of America. Next week the news on US bank stocks will be a substantial hike in the dividends.

Own 2 or 3 US banks or an ETF? The ETF will do well, but Bank of America (BAC-N) is entering a sweet spot in the cycle. There are things they are doing in cutting costs. It has the most exposure to small businesses and US consumer. They’re entering a point where they can buy back a lot of stock and increase the dividend. He would choose this over an ETF.

(A Top Pick Nov 1/16. Up 87%.) There were a few tailwinds involved. Higher rates were expected, a better US economy, better regulation in the US and higher earnings.

Has never owned this in her clients' portfolios. It's a good proxy for a large cap US financial Bank. If you own this, keep holding it. It is going to benefit from an improving economy and from lower US corporate tax rates.

It depends on whether we ‘melt up’ or not. It seems there is a general consensus that it will be a decent year. You could buy this on a pull back to trend support or breakout. He is short a little on the banks. He would look to cover it on a pull back.