Market Wrap - Stock pick — Bank of America
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Caroline Cremen from Adviceworx chose Bank Of America as her stock pick of the day
"My pick is a Bank of America, we saw during the height of the covid crisis that banking stocks and financials sold off quite dramatically. People were worried mainly about credit impairments and you're not seeing credit impairments being as bad as we thought because of the stimulus checks that came through. Bank of America is very geared towards consumer banking and it's very interest rate sensitive, so if we believe that interest rates have bottomed and that they're going to increase in the future, this is a very very good bet to actually invest in. And, even if that doesn't happen it has
a very consistent dividend of 2.5% and they paid that even during the lockdown."
"My pick is a Bank of America, we saw during the height of the covid crisis that banking stocks and financials sold off quite dramatically. People were worried mainly about credit impairments and you're not seeing credit impairments being as bad as we thought because of the stimulus checks that came through. Bank of America is very geared towards consumer banking and it's very interest rate sensitive, so if we believe that interest rates have bottomed and that they're going to increase in the future, this is a very very good bet to actually invest in. And, even if that doesn't happen it has
a very consistent dividend of 2.5% and they paid that even during the lockdown."
