BAC-The Smartest Stock to Buy for $50

    BAC-The Smartest Stock to Buy for $50 You don't need a lot of money to make a fortune on Wall Street. In the long run, the stock market has proven time and again to be a sure-fire source of income. Although there have been double-digit dips since the early 1950s, the S&P 500 benchmark eventually turned positive, clearing each of these dips. In fact, it has been a tool for making a profit by bringing big dividends for many years. On the other hand, one of the most advantageous aspects of running your money in the stock market is that you do not need a lot of wealth. Even $50 is enough to get started. With that being said, here is one of the smartest stocks you can buy right now with $50.  

Bank of America BAC (NYSE) $38,68 0,00 (%0,00)

 

One of the best ways to make a profit in the long run is to invest your money in bank stocks. At the top of this list is the money center giant Bank of America (NYSE:BAC). It should not be forgotten that the banking sector is cyclical. In times of recession, Banks avoid delays in loan payments, etc. Although it was seen that the damage writings increased. When the economy is running smoothly, lending and net interest income also tend to rise. The most important thing to understand is that periods of economic expansion often last much longer than the average recession. If that means banks recovered easily in a few quarters and enjoyed annual growth in deposit, loan and interest income.

BAC-The Smartest Stock to Buy for $50

Interest rate sensitivity makes Bank of America more interesting than other banks. It is known that every time the US economy heats up, the Federal Reserve raises interest rates. With the expected 100 basis points shift as of the end of June quarter, it is considered certain that 8 billion dollars will be netted in additional net interest income. It has also developed Digital Banking and reached 40,5 million people with BofA. This online and mobile banking push allows the company to consolidate some of its branches and reduce its non-interest expenses. Currently paying a return of 2,2%, and CEO Brian Moynihan's announcement that he is willing to buy back most of the company's common stock when allowed by the country's central bank, indicates that BAC has a satisfactory capital return plan. This proves that it is a good investment tool.  

Source: The Motley Fool

 

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