With a potential Fed hike coming is the Bank of America worth considering on a short term basis over the summer? Financials tend to gain on rising interest rates as loans can become more profitable for lenders.
Bank of America’s seasonals are not extremely strong but do point to more strength than weakness on balance.
Over the last 10 years, Bank of America has risen a total of 06 times in 10 years between July 13 and August 01 with an average return of +1.50%. The largest gain was in 2018 with a 9.46% gain. The largest loss was in 2012 with a -7.67% loss.
Major Trade Risks: Any heavy risk-off selling in the stock market on COVID-19 related fears could also weigh on Bank of America stock.
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina.