Bank of America's CEO Says There Won't Be a Recession. Time To Buy the Stock?
Arguably, no stock trading sector is more sensitive to the economic cycle than the banking sector. Banks, after all, are at the center of business activity making loans for capital projects or mortgages, and taking on more deposits as the economy grows. If the economy changes (for good or bad), banks are one of the first stocks to see the effects.
Given all the economic volatility of the past few years, it's gotten tougher to tell which way the economy is really going. The general consensus earlier this year was decidedly toward a definite downturn. But recently, one of the country's foremost bankers made a bold prediction. Speaking at the Economic Club of New York last week, Bank of America's (NYSE: BAC) Brian Moynihan said bluntly, "We won't have a recession."
Elaborating, he told the audience, "Our strategists are saying 'no recession,' very slow growth. That's a soft landing by definition."
Source Fool.com
