Bank of America Should Fear Dumb Money

Updated

Investors that held onto their Bank of America shares over the past 15 months are undoubtedly pleased. The stock is up more than 111%, and optimism around the stock is reaching new heights. While still trading well below book value, some may be wondering if the shares have been bid up by feared "dumb money" from careless investors.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer discuss whether or not investors are ignoring the potential downside of an investment in the Charlotte, NC-based megabank.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

The article Bank of America Should Fear Dumb Money originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Google. The Motley Fool owns shares of Bank of America and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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