In a world where the Federal Reserve continues to drop cash from helicopters, Bank of America’s (NYSE:BAC) BAC stock is worth little more than payment processor Paypal (NASDAQ:PYPL).
As markets opened Aug. 13, Bank of America and its $2.4 trillion of assets was trading at about $26.70, a market cap of $231 billion. Paypal, with $63 billion in assets, was worth $224.5 billion.
How does that happen? As I’ve learned in a 42-year career writing about business, money sitting in a vault is just potential energy. Money that’s causing value to be exchanged is money at work. Processors put money to work. Banks mainly hold it.
But this too, shall pass. When money becomes money again, will you, like Warren Buffett of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), want your money in a BAC stock, or a fintech?