... depends on if you are a consumer or a producer. Greece just like Cyprus will have little impact on the long term U.S. economic outlook. In the mean time the U.S. consumer is receiving the benefits of the short term impact.
So far it looks like mdb will be wrong again. At least since I have been on this site, I believe he has almost a perfect record of being wrong. What is funny is he thinks others should try to emulate his record! I guess if you want to go broke really quick, that would be something other investors could try to do...LOL
Looks like Greece is really helping the rest of the world, rather then hurting them. In fact the only ones they appear to have hurt is themselves. Mean while the American consumer always appreciates drops in oil during the peak summer driving season...
Seems like to me you are not all that good of a short term trader. After all, you waited till BAC dropped to $17 before selling. Perhaps you should stop bragging, and instead start figuring out why you left so much money on the table???
LOL, "BAC had always dropped dramatically more". What a bunch of nonsense. BAC hardly dropped more then the other big four last week, and it is within a ten of one percent of both Citi and WFC right now today. So why don't you stop posting such easily proven lies.
Plus Citi dropped the most since the recession, and the only reason their stock price is higher is because they were forced to do a 1 for 10 reverse split. You might want to get your facts straight before you post such BS.
As for BAC's performance, timing is everything. I am personally nicely in the green, and have absolutely no problem with my BAC investment. You on the other hand, based upon your posts have lost a lot of money waiting for BAC to return to single digits, which it simply is not going to do. Your own posts support what a dismal record you have in predicting BAC's stock movement.
Perhaps you should stop posting comments, because they just prove over and over again how clueless you are!!!
Since BAC is more sensitive to potential delays in the Feds raising interest rates, they should lead the big four banks in the percent of the amount dropped. In addition, as already has been announced in several articles, U.S. treasury rates are dropping again as investors seek safer investment havens, which means demand has gone up thus driving down returns. This obviously also impacts BAC''s short term profits as well as all the major U.S. banks.
However, as we saw per the market's reaction, when Greek first announced their referendum, BAC's market drop will not be much more then the other big four banks. In addition, the "NO's" winning the Greek referendum should bring about a fairly rapid completion of this entire scenario for the rest of the EU, as well as its up and down impact on all of the world's financial markets.
While the complete negative impact to the Greek people will take much longer to play out, it is extremely likely in the next two weeks the U.S. markets will have moved on from this issue, and again be focusing on the growth of the U.S. economy. With Greece's own GDP being such a small percent of not just the world's GDP, but EU's as well, the major impact of the whole Greek situation has more of a political then a financial impact to world markets.
In the end therefore, based upon each BAC's investors personal viewpoint, the up coming drop could very well present an excellent buying opportunity.
Quote: "In the past, it took the stock market a median of just eight days to bottom out after a shock, according to S&P Capital IQ.
Fast recovery: In fact, the S&P 500 recovered all of that lost ground in a mere 14 calendar days. That's pretty reassuring to those worried about how a Greek default or exit of the eurozone may impact their portfolios.
"As history has shown, prior market shocks have usually proven to be better opportunities to buy than bail," Sam Stovall, chief investment strategist at S&P Capital IQ, wrote in a note to clients."
Quote: "Stovall's analysis shows that shocks that occur during bull markets -- like the one we're currently in -- typically resolve themselves quickly. That allows opportunistic traders a window to scoop up stocks on the cheap."
Source: article titled "Think twice before dumping your stocks because of Greece" dated June 30, 2015
In June (as of today's closing) BAC is up approximately 2%, while the Dow is down 2.3%, the S&P is down 2.4%, and the Nasdaq is down 2.7%. That means BAC in June (to date) outperformed the three major U.S. stock markets by more then 4%. So the fact is, long investors in BAC stock this month were pretty smart investors.
What's more, those that try to justify their negative claims about the quality of the BAC long position, using overall market and global black swan events are naïve and demonstrate their complete lack of understanding in stock market investing. All of the big four U.S. banks experienced approximately a 2.5% pullback in their stock prices today. The fact is that global markets everywhere were negatively impacted by the latest news related to Greece, and the banking sectors globally was impacted slightly more then other sectors.
BAC experienced a 2.9% pullback today. Just as BAC has shown on many positive days to outperform the other big bank stocks, on many negative days they also tend to under perform a little more. That is because, as has been well documented in many articles, BAC's future performance is tied a bit more closely to future rate hikes which are tied directly to overall U.S. economic growth, and that is tied a little more loosely to global economic growth.
So global or U.S. event that indicate, or could impact, either positively or negatively domestic economic growth, and future Fed rate hikes, impact BAC's stock a little more then the other major US bank stocks. The above is just some basic analysis and information, that most of the smart investors on this board are already well aware of. However, there are a few fools that continually add negative and illogical posts on this board that seem bound and determined to continually spread lies about the current quality of holding a long position in BAC's stock.
Therefore, my hope and suggestion to all potential BAC investors is perform your own research and due diligence.
Per the U.S. constitution we have a separation of church and state. The government cannot force any church or religion to perform such marriages. However, any that are performed by either government officials or churches (that so elect to) must be recognized. Plus, local and state government officials cannot refuse to perform such marriages. In addition, states must recognize such marriages performed in any other state. A copy of the text of the actual Supreme Court ruling is available online and explains the court's decision.
A very reasonable question. If I were a day trader, I would certainly be watching the pre-market activity on Monday, to determine if there was an opportunity to make some money shorting. However, I am a long term investor in BAC, and believe that any short term drops that occur due to these events could create another opportunity to add to my current position.
Your post shows a complete lack of understanding of the economic relationship between the EU and the US.
Quote: "The European Union and the United States have the largest bilateral trade relationship and enjoy the most integrated economic relationship in the world."
Quote: "Total US investment in the EU is three times higher than in all of Asia."
Quote: "EU investment in the US is around eight times the amount of EU investment in India and China together."
Quote: "EU and US investments are the real driver of the transatlantic relationship, contributing to growth and jobs on both sides of the Atlantic."
Quote: "The transatlantic relationship also defines the shape of the global economy as a whole. Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy."
Quote: "The EU and the US economies account together for about half the entire world GDP and for nearly a third of world trade flows."
The EU imports almost $240B in goods from the U.S. each year, and another $185B in services. Anything that could have a serious negative impact on the EU's economy, would have a material negative impact on the U.S. economy. The Greece situation creates significant uncertainty about what impact it might have on the EU overall. In addition, while BAC might not have any direct MATERIAL exposure to Greece, it certainly does with the entire EU, as well as U.S. companies who export significant goods and services to the EU.
Plus, we have two other global events this weekend. A major terrorist attack in Tunisia, as well a China lowering its interest rates and decreasing required bank reserves to try and stem a slowing economy.
In combination, none of the news this weekend is likely good for the U.S. stock markets. Though, on the other hand, the Greece situation might have a reverse effect and could result in an inward money flow to the U.S. markets as a safe haven. Only time will tell.
I would hate to see you feel bad mdb, so to cheer you up, I am more then happy to call you an "idiot" today...LOL
Truly, just kidding. BAC is holding up nicely, and I suspect traders are waiting for the press release from the upcoming Fed meeting.
Quote: "The Treasury Department auctioned $21 billion of 10-year notes at a high yield of 2.461 percent, the highest since September... Overall demand at the auction was the highest since December... Government bonds in both Europe and the U.S. have come under heavy selling pressure over the past week amid a growing perception that a pickup in economic activity and inflation means that ultralow debt yields are no longer justified...
In addition, Friday's stronger-than-expected U.S. nonfarm payrolls report and further signs this week of strength in the jobs market has renewed talk that the Federal Reserve is likely to raise interest rates this year—putting further upward pressure on Treasury yields... Weekly mortgage applications surged amid higher interest rates, the Mortgage Bankers Association said. Total mortgage application volume jumped 8.4 percent on a seasonally adjusted basis for the week ended June 5 from the previous week. "
Source: article titled "Treasury auctions $21 billion of 10-year notes at a high yield of 2.461%" dated June 10, 2015.
Quote: "There has been a slow but persistent increase in new foreclosure filings... It appears that a number of these new filings are in fact re-filings with new law firms who took over the business after the bad-actor law firms were eliminated. Many of these new filings have been in foreclosure limbo for more than a year and are now coming to sale in 2015... “It’s important to note that in most of these states, foreclosure auctions and REOs are coming off somewhat artificially low levels last year and are still far below the highs reached during the worst of the foreclosure crisis back 2009 and 2010...
Due to our ponderous judicial system, most of the options have been exhausted, and the judges are now expediting the process,” said Mike Pappas, CEO and president of the Keyes Company, covering the South Florida market. The banks recognize the opportunity in this improving market and are aggressively trying to remove these properties from their balance sheets. It is encouraging, after seven years, to see the end near on this dramatic cycle.
... is also a sign of a strengthening market with low available inventories and increasing prices across the state... Despite a bit of an extension to this wind-down process due to delayed actions created by the Homeowner Bill of Rights in 2013, we are preparing that this is really a final push to clear the decks of the a still disproportionate amount of distressed homes and finally bring the market back to a more stability"
Source: article titled "U.S. Foreclosure Activity Increases 5 Percent in January Driven By 15-Month High in Bank Repossessions"
While BAC itself has very little, if any, exposure to Greece: it is still part of the entire stock market, and it along with the rest of the U.S. stock market will display a short term negative impact if the negotiations fail. Just as it should see an upward bounce if negotiations are successful. So your statement is both correct and incorrect.
In considering short and long term impacts on BAC's stock, one must always consider the impact of different global news on the overall market. Certainly day traders take such things into consideration, as they can have a significant impact on short term stock swings in both directions. So it is completely incorrect to say BAC's stock price has nothing to do with Greece.
IMO the biggest "short" term impact on BAC's stock will be driven by the outcome of the Greek negotiations. It is obvious if Greece is able to come to successful terms with it's creditors, that this will have a positive impact. So the thing to consider is what will happen if the negotiations fail?
I believe if that occurs, this will result in a handle forming in BAC's chart. Short term and weaker holders will take profits, but after they are weeded out, BAC PPS should then be in an excellent position moving forward. In either case, once BAC breaks above an $18 price per share, there will be plenty of room for it to run.
With the stock already at around $17.50 PS, even though we are still probably several months away from any likely increase in the Fed rate, everything is looking good IMO. Continuing improving U.S. economic data will increase discussions about the timing of the fed rate increase which will further drive the stock upward.
The June Fed meeting and follow up press conference should provide increased print about the U.S. economy improving. In addition, sometime in the next several months BAC should be resubmitting its capital plan. That should also boost the stock.
Since the fourth quarter often tends to be a good quarter for the U.S. stock market, and with Democrats needing to drive the economy forward as we enter the 2016 election year, the stars look to be lining up for BAC's longer term stock holders.
I would think this should have a negative impact on stock market tomorrow.
Jb, congratulations, I like your intelligent post. I do not know if your projections are correct or not, but at least you based them on some type of logical analysis and facts. Thanks for sharing the information...