Latest news with #Bank of America
Forbes
a day ago
- Business
- Forbes
4 Signs You Have Too Much Investing Risk And How To Fix It
A contrarian strategy can limit your exposure to the scenario no investor wants: a major downturn ... More when you're heavily concentrated in high-risk positions. Investors have more risk in their portfolios right now, according to monthly survey by Bank of America, as quoted in Investment News. Higher allocations to U.S. and European stocks, including volatile technology stocks, are creating the riskiest portfolios since 2001. Admittedly, 2025 is a difficult time not to bet heavily on growth stocks. After all, AI chipmaker Nvidia recently became the world's most valuable company. And, the S&P 500 and the tech-heavy Nasdaq Composite are fresh off new highs. The investing climate is largely rewarding risk—and most investors are happy to accept the gains. In these millionaire-making times, the approach of Omaha's Oracle Warren Buffett comes to mind: "we simply attempt to be fearful when others are greedy and to be greedy when others are fearful." This contrarian strategy can limit your exposure to a major downturn when you're heavily concentrated in high-risk positions. 4 Signs Your Portfolio Is Too Risky Risk is a funny thing for investors. The thresholds for too much or too little risk are mostly set by your personality and preferences. You may tolerate a 90% allocation to stocks, while your neighbor resists having a single dollar in equities. This makes it tough to define a risk test that applies to everyone. Even so, there are signs you may be stretching the boundaries of your risk tolerance. Four are below. How To De-Risk Your Portfolio Safely Sticking to a conservative investment approach long-term can produce better results than deviating from an aggressive strategy. This is why aligning your portfolio risk with your tolerance is so important. If you need to de-risk your portfolio, do it by taking profits, changing the allocation on new investments or pausing your dividend re-investments. Investment Risk FAQs Here are the answers to the questions retail investors are asking about investing risk. Yes, investing has risk. Any invest-able asset with the potential to increase in value also has the potential to decline. You can manage the risk by holding a diverse mix of investment types for long periods. Your portfolio should be only as risky as you can handle. Conventional wisdom says you should take on more risk when you are younger and less as you age, but this rule isn't universally appropriate. The right risk level for you is conservative enough that you will stick to your strategy even in the worst of times. Too much risk makes for a volatile portfolio. Big value declines can work against your long-term returns, because it takes a larger gain to make up the lost ground. Say you have a $100,000 portfolio that dips by 25%. Now it's worth $75,000. To get back to $100,000, you need a 33.3% increase—since you are starting from a lower base.
Yahoo
5 days ago
- Business
- Yahoo
Why Is Intuitive Machines Stock Still Going Up?
Key Points Bank of America cut its price target on Intuitive Machines stock yesterday -- and the stock rose anyway. Intuitive is gaining again today, but BofA's warnings yesterday still merit attention. Free cash flow at the space company will be lumpy, and could remain so for years. 10 stocks we like better than Intuitive Machines › Something curious is happening with Intuitive Machines (NASDAQ: LUNR) stock, the tiny lunar exploration company that last year landed a U.S. spacecraft on the moon for the first time in over 50 years. Yesterday, Bank of America analyst Ronald Epstein lowered his price target on Intuitive stock from $16 to $10.50, below where the stock was trading, triggering an "underperform" rating. And yet, Intuitive Machines stock went up, not down, on the news (rising 1.2%). And today, it's going up even more. What BofA says about Intuitive Machines stock Intuitive Machines stock gained a healthy 5.1% through 10:40 a.m. ET. But while investors are surely happy to see Intuitive continue to defy gravity, maybe they shouldn't get used to it. As Epstein explains, in a note covered by The Fly, Intuitive stock has done well this year after surprising investors with a report of positive free cash flow achieved in Q1 -- $13.3 million generated in the quarter. At the same time, however, management warned that cash receipt lumpiness could return in Q2. And I suspect "cash receipt lumpiness" translates as "negative free cash flow." Is Intuitive Machines stock a buy? This shouldn't be a surprise. Analysts have long forecast it would take Intuitive until at least 2027 to reach sustained profitability as calculated according to generally accepted accounting principles (GAAP), and 2028 to begin generating consistently positive FCF. Q2 2025 was almost certainly an aberration, albeit a happy one, and investors will still need patience with this stock. That said, I believe patience will be rewarded. Between the company's series of NASA contracts to land spacecraft on the moon, its Near Space Network communications contract, and now a new business building Earth reentry vehicles for semiconductor and space pharmaceutical customers, Intuitive's future could be out of this world. Should you invest $1,000 in Intuitive Machines right now? Before you buy stock in Intuitive Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,059% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Bank of America is an advertising partner of Motley Fool Money. Rich Smith has positions in Intuitive Machines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Is Intuitive Machines Stock Still Going Up? was originally published by The Motley Fool
Wall Street Journal
15-07-2025
- Business
- Wall Street Journal
Investors Are No Longer Bracing for a Recession
Concerns that President Trump's April "Liberation Day" tariffs could trigger a global recession have eased dramatically, according to Bank of America's latest survey of fund managers. Some key findings: A net 59% of investors polled in July said a recession was unlikely—a big flip from the net 42% who feared one in April. Investor sentiment is at its most bullish since February, driven by improving expectations for corporate profits. Some 42% of investors expect second-quarter company earnings will beat forecasts. Trade wars are still the biggest concern, with expectations for final U.S. tariff rates on other countries rising. Most expect the Federal Reserve to cut interest rates one or two times by year end.
Bloomberg
15-07-2025
- Business
- Bloomberg
Wells Fargo 2Q Net Interest Income Misses Estimates
00:00 You have Wells Fargo with a miss and a staying in line when it comes to net interest income. So you do have a member. JPMorgan also slightly missed on net interest income for the quarter. It's the outlook. Now, how much more juice can you squeeze out of the consumer? I had mentioned costs were also going to be a big focus this earnings season, I would say for Wells Fargo. Interesting to see credit quality is also really good. This is a really good news for both JPMorgan and Wells Fargo coming in better than expectations. However, non-interest expense, this is the expenses you have control over coming in a little bit higher than expected. The setup here was that Wells Fargo was already trading at a richer price to book ratio than you had at Bank of America, for example. There's a lot of promise in the stock with the asset cap lifting. So now for Charlie Scharf, it's a show me the money story. They did miss on investment banking as well. These are business lines that they want to grow over at Wells Fargo now that that asset cap is lifted. So high bar now, not everyone can be JPMorgan. They came in at more than a 20% return on tangible common equity. No one thought that they would get that this quarter. So can the rest of the banks keep pace?
Yahoo
14-07-2025
- Business
- Yahoo
Big Banks earnings preview: Top themes to watch
Investors are watching upcoming Big Bank earnings this week for clues on loan growth and the broader economic outlook. Yahoo Finance Senior Reporter David Hollerith and RBC Capital Markets analyst Gerard Cassidy break down what to expect from names like JPMorgan (JPM), Bank of America (BAC), and Citigroup (C). To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
