Here's How Much Investing $1,000 In Bank Of America At Great Recession Lows Would Be Worth Today

With an extremely volatile market, the S&P 500 has lost significant ground from its all-time-high in late December 2021.

The market is now retesting early 2021 levels.

Buying the dip was a great move during the 2008 Great Recession, when the S&P 500 lost roughly 50% of its value, ultimately bottoming at 666.79 on March 9, 2009.

Since the bottom, the SPDR S&P 500 ETF Trust SPY has generated a total return of 379% over the last 13-plus years.

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One market leader since the financial crisis has been Bank of America Corp BAC.

Bank Of America’s Last 13 Years: Without a doubt, Bank of America and other big U.S. banks were at the epicenter of the financial crisis back in 2008 and 2009.

Among the banks that survived the crisis, Bank of America was one of the hardest-hit. In fact, Bank of America shares dropped as low as $2.53 in early 2009 as investors questioned whether the company could avoid bankruptcy or total nationalization.

Fortunately for them, by the end of 2009 Bank of America had announced it would repay the $45 billion in bailout money it received from the U.S. government in its entirety. The stock started the 2010s back above $15.

In the wake of the financial crisis, Bank of America underwent a downsizing program from 2011 through 2014 to improve its balance sheet, reduce risk, streamline its operations and focus more on mobile banking.

The Eurozone debt crisis in 2011 sent shares tumbling back down to as low as $5.13, but the stock was again quick to recover.

By late 2012, Bank of America was trading back above $10. It would take roughly four years to reach $20 in 2016, but the stock hit the $30 mark in late 2017. Bank of America eventually made it as high as $33.05 in early 2018 before pulling back to $22.66 roughly a year later.

Bank of America spent most of 2019 in a range between $26 and $31, but broke out to its post-Great Recession high of $35.72 in December 2019.

Bank of America shares dropped to $17.95 in March 2020 during the coronavirus sell-off, before skyrocketing to $50 as the S&P 500 reached all-time highs (Dec 2021).

Bank of America investors that bought on the financial crisis dip have turned a significant profit.

In fact, $1,000 worth of Bank of America stock bought on the day the S&P 500 bottomed in 2009 would be worth about $13,144.5 today (+1215.45%), assuming reinvested dividends.
At the time of publication BAC was trading at $33.67 up by 6% in 24 hours.

Looking ahead, analysts are expecting more gains for Bank of America in the next 12 months. The average price target among the 6 analysts who cover the stock is $42, suggesting 25% upside. 

Public domain photo via Wikimedia. 

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