A US bank stock...
STOCK 1 OF 5
Bank of America (NYSE:BAC)
Bank of America Corp has been on fire over the last year. It This is due to a stronger American economy. For years the U.S. was stuck at zero, or near-zero rates, because the economy lacked strength. Well, now they’re recovering and this time it looks sustainable.
Bank of America and Interest Rates
All of that has led to higher interest rates over the last 15 months. However, they’re still not at what economists consider normal interest rates.
Interest rates will likely continue to climb over the next few years. But why do rates matter for Bank of America? With one of the largest collections of customer deposits in the U.S., higher rates allow Bank of America to earn more money on those deposits.
Sales are forecast to grow just 3.7% in 2018, however, earnings are expected to grow about 20%. It’s essentially risk-free income. You can learn more about what experts are saying about Bank of America on Stockchase.
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