These Vanguard ETFs Rebounded After Trump's First Days Back in the White House. Should Investors Beware the Bounce?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2025
0mins
Should l Buy BAC?
Source: NASDAQ.COM
Bond Market Reactions: Following Donald Trump's second inauguration, Vanguard bond ETFs initially declined due to concerns about inflation from proposed tariffs but rebounded shortly after his inauguration when no new tariffs were imposed.
Investment Recommendations: Investors are advised to be cautious with long-term bond funds and consider alternatives like the Vanguard Financials ETF, which may benefit from potential deregulation and tax cuts during Trump's presidency.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 48.750
Low
55.00
Averages
61.64
High
71.00
Current: 48.750
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bank of America Stock Rises Slightly, Optimistic Outlook Ahead
- Stock Performance: Bank of America (BAC) closed at $48.14, up 1.3% from the previous session, outperforming the S&P 500's decline of 0.37%, indicating market confidence in its short-term performance.
- Earnings Expectations: The upcoming earnings report on April 15, 2026, is projected to show earnings of $0.99 per share, reflecting a 10% year-over-year growth, with revenue expected at $29.22 billion, a 6.76% increase from the prior year, enhancing investor confidence in future growth.
- Analyst Ratings: Currently rated #3 (Hold) by Zacks, Bank of America has seen a 0.4% upward revision in EPS estimates over the past month, reflecting analyst optimism about profitability, which could positively impact stock prices.
- Valuation Metrics: With a forward P/E ratio of 11, below the industry average of 12.95, Bank of America appears undervalued, while its PEG ratio of 1.16 suggests attractiveness when considering expected earnings growth.
See More
Bank of America Forms New Team to Aid Private Equity Exits
- Market Opportunity: Following a decline in M&A activity in 2022, private equity firms have been forced to hold investments longer, prompting Bank of America (BAC) to seize the opportunity by forming a new team to assist these firms in exiting investments flexibly, thereby enhancing its competitive position in the market.
- Team Formation: The Private Capital M&A Group at BofA will integrate global capital solutions, financial sponsors, and industry coverage groups to help investment firms monetize their portfolios in innovative ways, thereby improving client service capabilities.
- Leadership Structure: The group is co-led by Richard Peacock and Amanda Dupuy, with Peacock continuing to oversee consumer and retail M&A while Dupuy heads global secondary advisory investment banking, ensuring the team's expertise and market adaptability.
- Market Outlook: Eamon Brabazon, co-head of global mergers and acquisitions at BofA, noted that the pace of sponsor exits has been structurally low in recent years and will need to rebound, with sponsors expected to account for a larger share of the M&A landscape as it rapidly evolves.
See More
Wall Street Banks Eye Market Share from Private Credit Lenders
- Market Share Recovery: According to PitchBook data, banks' share of buyout financings over $1 billion fell to 39% in 2023 but has since rebounded to over 50% in 2025, indicating potential for banks to regain ground in the private credit market.
- Regulatory Environment Improvement: With expectations of easing regulations, particularly regarding the Basel III Endgame implementation, banks are poised to regain competitive advantages in the lending market, potentially attracting more business lending and increasing market share.
- Challenges for Private Credit: The private credit sector is facing intensified pressures as higher interest rates make it difficult for borrowers to repay loans, increasing default risks, while rising investor demand for liquidity may impact capital inflows into private credit.
- Signals from Large Transactions: Recent active participation of banks in large financing deals, such as multi-billion-dollar leveraged loans for Electronic Arts and Sealed Air, indicates a strong willingness to engage in significant transactions when market conditions permit, potentially enhancing competition in the market.
See More
Warren Questions Fed Nominee's Qualifications Amid Concerns
- Nominee Qualifications Questioned: Senator Elizabeth Warren of Massachusetts sent a scathing letter to Federal Reserve nominee Kevin Warsh, criticizing his past performance during the 2008 financial crisis and asserting that he is unfit for the Fed Chair position, reflecting deep concerns about his potential policy direction.
- Policy Impact Analysis: Warren highlighted Warsh's failure to effectively address the subprime mortgage crisis while serving on the Fed's Board, as he supported high-risk financial products that led to millions of American families losing jobs and homes, emphasizing the potential threat he poses to the U.S. economy.
- Nomination Process Stalled: Warren's colleague, Senator Thom Tillis from North Carolina, stated he would block Warsh's nomination until a criminal investigation into current Fed Chair Jerome Powell is resolved, further complicating the nomination's uncertainty.
- Call for Regulatory Reform: In her letter, Warren demanded answers from Warsh on ten specific questions regarding his tenure at the Fed, aiming to uncover his stance on financial regulatory reforms, which reflects heightened concern over future financial policies.
See More
Musk Plans to Allow Retail Investors in SpaceX IPO
- Retail Investor Opportunity: Musk and his team are considering allowing retail investors to purchase up to 30% of SpaceX's IPO, breaking the norm of allocating only 5% to 10% to retail investors, highlighting a significant shift in approach towards retail participation.
- Record-Setting IPO Size: SpaceX is expected to file its IPO prospectus this week, aiming to raise up to $50 billion with a valuation exceeding $1.8 trillion, which would make it the largest IPO in history, surpassing Saudi Aramco's $29 billion raised in 2020.
- Market Positioning Advantage: Despite not being public yet, SpaceX has become a household name due to Musk's influence and its pioneering role in the space sector, utilizing reusable rockets to deploy low-orbit satellites and potentially providing high-speed internet globally.
- Diverse Financing Strategy: SpaceX plans to raise funds through various banks targeting different investor bases, using Bank of America for domestic retail distribution, Citigroup for international retail and institutional investors, while Morgan Stanley will manage smaller retail investors via E*TRADE.
See More
Meta Faces Legal Challenges, Stock Drops 8%
- Legal Rulings Impact: A Los Angeles jury found Meta negligent in a case involving a woman's addiction claims, resulting in a $6 million damages award, with Meta responsible for 70%, leading to an over 8% drop in stock price on Thursday, highlighting the direct impact of legal risks on the company's valuation.
- Uncertain Future Outlook: Following a separate jury ruling in New Mexico that imposed $375 million in civil damages, Meta announced plans to appeal, indicating that ongoing legal challenges could significantly affect its financial performance and investor confidence moving forward.
- Investor Sentiment Volatility: While Jim Cramer suggests that the current stock decline presents a buying opportunity, he cautions that continued legal battles may lead to increased volatility in Meta's stock, urging investors to remain vigilant amid these uncertainties.
- Increased Capital Expenditure: Meta anticipates capital expenditures between $115 billion and $135 billion this year, primarily for AI infrastructure development, which could exert further pressure on stock performance, even as the company maintains an optimistic long-term growth outlook.
See More
Bank of America Stock Rises Slightly, Optimistic Outlook Ahead
- Stock Performance: Bank of America (BAC) closed at $48.14, up 1.3% from the previous session, outperforming the S&P 500's decline of 0.37%, indicating market confidence in its short-term performance.
- Earnings Expectations: The upcoming earnings report on April 15, 2026, is projected to show earnings of $0.99 per share, reflecting a 10% year-over-year growth, with revenue expected at $29.22 billion, a 6.76% increase from the prior year, enhancing investor confidence in future growth.
- Analyst Ratings: Currently rated #3 (Hold) by Zacks, Bank of America has seen a 0.4% upward revision in EPS estimates over the past month, reflecting analyst optimism about profitability, which could positively impact stock prices.
- Valuation Metrics: With a forward P/E ratio of 11, below the industry average of 12.95, Bank of America appears undervalued, while its PEG ratio of 1.16 suggests attractiveness when considering expected earnings growth.
See More
Bank of America Forms New Team to Aid Private Equity Exits
- Market Opportunity: Following a decline in M&A activity in 2022, private equity firms have been forced to hold investments longer, prompting Bank of America (BAC) to seize the opportunity by forming a new team to assist these firms in exiting investments flexibly, thereby enhancing its competitive position in the market.
- Team Formation: The Private Capital M&A Group at BofA will integrate global capital solutions, financial sponsors, and industry coverage groups to help investment firms monetize their portfolios in innovative ways, thereby improving client service capabilities.
- Leadership Structure: The group is co-led by Richard Peacock and Amanda Dupuy, with Peacock continuing to oversee consumer and retail M&A while Dupuy heads global secondary advisory investment banking, ensuring the team's expertise and market adaptability.
- Market Outlook: Eamon Brabazon, co-head of global mergers and acquisitions at BofA, noted that the pace of sponsor exits has been structurally low in recent years and will need to rebound, with sponsors expected to account for a larger share of the M&A landscape as it rapidly evolves.
See More
Wall Street Banks Eye Market Share from Private Credit Lenders
- Market Share Recovery: According to PitchBook data, banks' share of buyout financings over $1 billion fell to 39% in 2023 but has since rebounded to over 50% in 2025, indicating potential for banks to regain ground in the private credit market.
- Regulatory Environment Improvement: With expectations of easing regulations, particularly regarding the Basel III Endgame implementation, banks are poised to regain competitive advantages in the lending market, potentially attracting more business lending and increasing market share.
- Challenges for Private Credit: The private credit sector is facing intensified pressures as higher interest rates make it difficult for borrowers to repay loans, increasing default risks, while rising investor demand for liquidity may impact capital inflows into private credit.
- Signals from Large Transactions: Recent active participation of banks in large financing deals, such as multi-billion-dollar leveraged loans for Electronic Arts and Sealed Air, indicates a strong willingness to engage in significant transactions when market conditions permit, potentially enhancing competition in the market.
See More
Warren Questions Fed Nominee's Qualifications Amid Concerns
- Nominee Qualifications Questioned: Senator Elizabeth Warren of Massachusetts sent a scathing letter to Federal Reserve nominee Kevin Warsh, criticizing his past performance during the 2008 financial crisis and asserting that he is unfit for the Fed Chair position, reflecting deep concerns about his potential policy direction.
- Policy Impact Analysis: Warren highlighted Warsh's failure to effectively address the subprime mortgage crisis while serving on the Fed's Board, as he supported high-risk financial products that led to millions of American families losing jobs and homes, emphasizing the potential threat he poses to the U.S. economy.
- Nomination Process Stalled: Warren's colleague, Senator Thom Tillis from North Carolina, stated he would block Warsh's nomination until a criminal investigation into current Fed Chair Jerome Powell is resolved, further complicating the nomination's uncertainty.
- Call for Regulatory Reform: In her letter, Warren demanded answers from Warsh on ten specific questions regarding his tenure at the Fed, aiming to uncover his stance on financial regulatory reforms, which reflects heightened concern over future financial policies.
See More
Musk Plans to Allow Retail Investors in SpaceX IPO
- Retail Investor Opportunity: Musk and his team are considering allowing retail investors to purchase up to 30% of SpaceX's IPO, breaking the norm of allocating only 5% to 10% to retail investors, highlighting a significant shift in approach towards retail participation.
- Record-Setting IPO Size: SpaceX is expected to file its IPO prospectus this week, aiming to raise up to $50 billion with a valuation exceeding $1.8 trillion, which would make it the largest IPO in history, surpassing Saudi Aramco's $29 billion raised in 2020.
- Market Positioning Advantage: Despite not being public yet, SpaceX has become a household name due to Musk's influence and its pioneering role in the space sector, utilizing reusable rockets to deploy low-orbit satellites and potentially providing high-speed internet globally.
- Diverse Financing Strategy: SpaceX plans to raise funds through various banks targeting different investor bases, using Bank of America for domestic retail distribution, Citigroup for international retail and institutional investors, while Morgan Stanley will manage smaller retail investors via E*TRADE.
See More
Meta Faces Legal Challenges, Stock Drops 8%
- Legal Rulings Impact: A Los Angeles jury found Meta negligent in a case involving a woman's addiction claims, resulting in a $6 million damages award, with Meta responsible for 70%, leading to an over 8% drop in stock price on Thursday, highlighting the direct impact of legal risks on the company's valuation.
- Uncertain Future Outlook: Following a separate jury ruling in New Mexico that imposed $375 million in civil damages, Meta announced plans to appeal, indicating that ongoing legal challenges could significantly affect its financial performance and investor confidence moving forward.
- Investor Sentiment Volatility: While Jim Cramer suggests that the current stock decline presents a buying opportunity, he cautions that continued legal battles may lead to increased volatility in Meta's stock, urging investors to remain vigilant amid these uncertainties.
- Increased Capital Expenditure: Meta anticipates capital expenditures between $115 billion and $135 billion this year, primarily for AI infrastructure development, which could exert further pressure on stock performance, even as the company maintains an optimistic long-term growth outlook.
See More
