Where Will Bank of America Stock Be in 1 Year?
It hasn't been a great year so far for the banking sector. It never is when interest rates are high and borrowers start running into trouble. Through a confluence of forces, this year's economic challenges have led earlier this years to the collapse of three banks and rising concerns of more collapses. Although it looks like the upheaval has eased for now, the forces that caused so much damage remain.
Large banks are better fortified their smaller rivals, and Bank of America (NYSE: BAC), the second-largest bank in the U.S., appears to be healthy. However, it's still under pressure. What will it look like at this time next year?
Bank performance typically mirrors the state of the economy. Each bank has variations that affect how it runs, and that make it more or less risky. But as a group, banks do well when the economy is flourishing and vice versa. When there's more money in the system, there are more deposits, more loans, and more of all the things that banks exist for, earning them more money.
Source Fool.com
