Better Buy: Bank of America or Toronto-Dominion Bank?
There's a mixed outlook for banks today, as rising rates mean these vital financial institutions can charge more for the loans they make. But rising rates also increase the chances of a recession, which would likely increase defaults and reduce demand for loans. Fear is winning out, with the shares of Bank of America (NYSE: BAC) and Toronto-Dominion Bank (NYSE: TD) down about 20% and 16%, respectively, in 2022. Is one of them a better buy? Yes.
Banks across the board have materially improved their finances since the Great Recession, which was the economic downturn between 2007 and 2009 fueled by excesses in the financial industry. And yet it still pays to examine history to see what happened to bank investors during that exceptionally difficult time. History never repeats itself, but it often rhymes.
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Source Fool.com
