Citigroup Inc. (C), JPMorgan Chase & Co. (JPM): Why Bank of America Corp (BAC) Investors Are Stressed Out

Foolish bottom line
So, why the lackluster share-price performance this week, then? Put simply, investors are awaiting the Fed’s announcement later today, which will reveal what each bank’s proposed capital plans are regarding dividend increases or share buybacks. Specifically, today’s news will let investors know whether or not the Fed will allow each bank to proceed with their capital return schemes (if they have any) as planned.

B of A did well enough on its stress test that the Fed will likely approve any reasonable plan put forward. And investors are hungry for any kind of action that will return capital to them in one form or another. After last year’s B of A stress-test failure, investors got neither a dividend increase nor share buybacks.

Expect some sort of welcome news on this front by COB today, and expect a jump in share price as the market opens tomorrow.

But always remember, Foolish investors, that no matter what your stocks are doing on a day-to-day, week-to-week, or even month-to-month basis, you’re in this for the long haul. Short-term share-price spikes and drops are a part of life for any investor, but so long as the companies you’re invested in have solid fundamentals, don’t worry: Your money is in the right place.

The article Why Bank of America Investors Are Stressed Out originally appeared on Fool.com and is written by John Grgurich.

Fool contributor John Grgurich owns shares of JPMorgan Chase. Follow John’s dispatches from the bleeding heart of capitalism on Twitter @TMFGrgurich.The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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