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Bank of America Brian Moynihan Interview - Insightful on General Market

edited April 19 in Other Investing
Caught the interview of Brian on the "entertainment" Mad Money show. Found a few interesting comments from the CEO of BOA that have broader market implications:

Cramer: Americans have a lot of dry powder and that can keep us out of a recession.
Moynihan:
*March 2022 vs. 2021. Consumers spent 13% more and 8% more transactions.
*April 2022 vs. 2022 Consumers are spending more than 18% in April and this exceeds inflation. Faster spending.
*Consumer accounts with 1-2K now have $3,500 in their checking account.
*Consumer accounts with 2-5K in their accounts now have $13,000 in their checking account
*Card spending is up 33% in early April vs. 2019 for those earning >50K
*People are earning more and being paid more
*Travel and restaurant spend has been constrained and people have been saving!
*"Investors say don't fight the Fed, I always say, don't fight the US consumer"... "loan balances are down and they have plenty of spending capacity".

The US economy has been constrained due to COVID... despite inflation and Ukraine, the US is much better positioned to have a strong economy this year. Makes you wonder why there's so much financial commentary on the positive outlook of International stocks and funds. I remain unconvinced and think the best values still lie in domestic funds.

Cramer: "America has the edge on the rest of the world... that's the secret sauce that explains a great deal of todays' gains."

Comments

  • edited April 20
    Thanks. Hope he’s right.

    Added: Caught him on Bloomberg today. He makes an impressive case.

    I suspect that to some extent Moynihan is “talking his book.” A banker predicting a recession would seem akin to a bartender going to a temperance meeting. That said, Dimon at JP Morgan sounds a little more concerned.
  • Whenever I hear Brian Moynihan on his quarterly calls or media interviews, I am absolutely amazed at the level of detail he absorbs and shares with the interviewer and audience. I always wonder if all CEO's have that much of a grasp on the working of their respective corporations.
  • @hank read your first sentence "talking his book" and immediately thought of Dimon and Mike Wilson/MS... so I doubt BM does that. He's had plenty of opportunity to do it. They are both strategic but I think they are both honest during these interviews.

    @PRESSmUP I agree 100%.
  • Oh! I didn’t intend to imply dishonesty. More like “predisposition”.
  • edited April 20
    Sorry... that's what I thought you meant... good word... predisposition. It was my misuse of the word by choosing "honest".
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