Is Bank of America Corp Immune to Recession?
Bank investors remain concerned amid sell-off in global markets
Banks around the globe have been battered since market turbulence jeopardized investor sentiments around the globe. Nervousness among investors is on the rise, with bank stocks having lost a huge chunk of their value this year. While option prices are increasing and implied volatility on bank shares also rising, we explore Bank of America’s potential to withstand this downturn.
Analysts and investors have concerns over the fears of a recession despite the strong fundamentals of US banks and improving economic data. Since the recent rout in the stock market, investors have shared growing concerns of an economic downturn. At the same time, Bank of America sees a mere 25% chance of the US heading into a recession, as cited by Market Watch.
