At $5, Bank of America (NYSE:BAC) was super cheap. Even now, on a relative price to earnings basis, the stock looks like a bargain. However, if I could truly determine that the company had the potential to reach the $4 per share in EPS it had a decade ago, then I’d be much more definitive about holding on.
One factor is the volatility around Fed movements. While the banks are going to make money one way or another, the country as a whole cannot afford higher rates without a total restructuring, and we don’t want to end up like Puerto Rico.
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