This morning, stocks declined in early trading but were well off their overnight lows as military tensions at the Russia – Ukraine border continued driving market volatility. These geopolitical tensions come to a market already under pressure from surging inflation and rate-hike expectations.
“All eyes are on the Fed,” Strategas investment strategist Ryan Grabinski wrote in a note to clients. “As of today, the market is expecting the Fed to raise interest rates at nearly every meeting this year,” he continued.
Wall Street strategists expect a bumpy road ahead for stocks as the Fed policy changes come to fruition. Today we’re focusing on a stock likely to do well as the Federal Reserve tightens monetary policy throughout the year.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]
Bank of America Corporation (BAC) provides banking and financial products and services for individual consumers, institutional investors, large corporations, and governments worldwide. It operates through the following segments: consumer banking; global wealth & investment management; global banking; and global market segments.
Thanks to its global investment banking and financial services portfolio, most are familiar with this financial titan. In the U.S., BAC currently operates via 4,300 retail financial centers, 17,000 ATMs, and digitally serves 41 million active users. Furthermore, the company is also present in 34 other countries across the globe.
After more than doubling since its pandemic-era low, let’s take a look at the factors that could boost BAC going forward. For one thing, the Fed has signaled multiple interest rate hikes in 2022, which should help BAC increase its interest income down the road.
Bank of America reported that net interest income (profits made on loans) grew to $11.5 billion in the fourth quarter. Wall Street sees as much as 12% annual revenue growth in 2022, mainly due to higher interest rates. BAC is a bargain with 14x forward P/E, compared to the broader Finance sector, which trades at 15.7x forward P/E.
Furthermore, BAC’s shift in focus towards the digital space seems to be benefiting the company. Last month, BAC reported that its Bank of America app facilitates 85% of deposit transactions on its network now. This accounts for nearly 48 million checks that BAC customers deposited in the second quarter.
Consider BAC’s uninterrupted 21-year history of rewarding investors through dividends if you need another reason. The company recently raised its quarterly dividend to $0.21 per share, up 16.7% from the previous quarter, putting the annual yield at 1.85%.
Where to invest $1,000 right now...
Before you consider buying BAC, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not BAC.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Banyan Hill Publishing:
Just $2 a Share Today — The No. 1 Investment of the 2020s
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom. [Click here to get details on $2 stock now.]