Tomahawk, WI 12/03/2013 (BasicsMedia) – There was a time, and it is not that far off, when everyone following the U.S banking sector closely, was convinced that Bank of America Corp (NYSE:BAC) was about to go bankrupt. It was only two years ago, after the 2009 financial crisis, that one would be laughed out of town for even contemplating investing in BAC stock. However, some people still went ahead to invest in BAC, and the market now waits to see if they were proven right in making this investment decision, or whether such people were foolish to even think about such a move in the first place.

Why Did Others Invest in BAC When Other Investors Kept Off?

Risk takers rarely follow a given investment trend. They choose stocks that everyone else is staying away from, and it requires a whole lot of guts and deeper knowledge and insight about companies for anyone to contemplate visiting in what everyone else is avoiding like plague. In the U.S, the banking industry has not recovered fully, and even the BAC is not exempt. The Federal authorities are demanding close to $865 million from Bank of America Corp (NYSE:BAC). Most Americans still have a lot of distrust for these banks, thus making this a very delicate situation.

Some two years ago, when talking to any option trader about Bank of America Corp (NYSE:BAC), you would be told that the stock would either be worthless, or see its price more than double in only a couple of years. The consensus back then was that people should keep off Bank of America stock and look elsewhere if they were really interested in stocks of companies that operate in the banking or financial sector. Bank of America Corp (NYSE:BAC) suffered more or less in a similar way as other major U.S banks such as JPMorgan Chase & Co as well as Citigroup and Wells Fargo to mention but a few names.

BAC’s Stock Triples

However, risk takers have every reason to smile. Bank of America Corp (NYSE:BAC) stock has nearly tripled from the time when the negative news regarding it kept coming out of Wall Street and from other sources. The uncertainty regarding BAC has all but dissipated in the last two years, and although the bank still needs to improve its perception in the eyes of the public, and become a more trustworthy institution, it appears to be heading in the right direction. When Warren Buffet purchased shares of the bank and endorsed its management, this helped many risk takers to come on board as well.

Bank of America Corp (NYSE:BAC)’s turnaround can be attributed to a wide range of factors, and Warren Buffet’s endorsement is just but one of them. The question ringing in many an investor’s mind is not whether the company is a risky stock any more, but rather, if the company’s upward trend has been exhausted or not. The company still has to work hard to overcome the numerous legal and regulatory challenges that keep coming up against it. As the U.S real estate sector keeps turning a new leaf, and showing signs of improvement, BAC’s risk takers are about to get the reward they deserve.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.