Sunday, 10 July 2011

Why I like the shares of Bank of America

Despite major economic challenges at different levels, I consider that the low price of the shares of Bank of America (USD 10.72) makes them an attractive investment. While many analysts have little confidence in the future, this is not my personal opinion.

Debt problems will be eventually solved in one way or another. People will continue to borrow money to invest in businesses, or to buy houses, cars, large appliances, and for many other purposes. The world economy is growing
overall and has been doing so for some time now.

If the upwards trend continues and becomes well established, Bank of America should do very well, or at least as well as any other major financial institution. I estimate the risk of this being a very bad investment at about 20%. In case that you want to take a look at these shares yourself, make your own research, and reach your own decision. It is your money, after all.


[Image by Alan Vernon. under Creative Commons Attribution License. See the license terms under]