The Federal Reserve has yet again increased the short-term interest rate. Ordinarily, higher rates should be good for bank stocks. But we think it’s time to turn bearish on Bank of America (BAC) .
The reasons for this are purely technical. First, Bank of America has outperformed its peers so far this year, and this might set off a correction.
Second, at $25 a share, there is little upside left in the Brian Moynihan-led company.
Third, Bank of America trades at expensive valuations relative to its growth and competitors.
