2014 Is Going to Be a Tough Year for Bank of America
Traditional banks are on the front lines of the economy. When consumers hurt, banks hurt. When businesses hurt, banks hurt. If money is tight in America, banks feel the pinch. It doesn't matter if the pain is cyclical or the result of "vampire squid" behavior, banks who rely on lending ride the fortunes of everyday Americans.
This is true even if a bank is over $1 trillion in assets, like Bank of America , or is a smaller regional player like U.S. Bancorp or People's United Financial .
It is this reality that has Motley Fool contributor Jay Jenkins concerned. In the video below, he explains how the confluence of rising interest rates, tapering Quantitative Easing programs, and a still-weak labor market could make for a tough time for banks.
Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.
The article 2014 Is Going to Be a Tough Year for Bank of America originally appeared on Fool.com.Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.