So MA had an amazing run last year. Do you guys think CC stocks are a safe bet? No matter what the economic climate, I don't see people suddenly using CCs less often. If anything, they might try to use more of it because they're lacking money and need to borrow.
I've invested in axp this year and although it's slow to move, I'm confident it'll do well in the long run. The thing about CC stocks is that they're all really good bets long term. If you have a couple million dollars, you stand to make so much from just investing in CC stocks for the next decade.
I currently don't hold any stocks from the financial sector. I am considering them but I think that at the moment the whole financial world is in a very strange phase, so I'd rather stay out for the moment.
It seems like it would be a good investment since people use them quite a bit, but would you lose money if more and more people stopped making their payments?
I like those companies and they're generally very good investments, but there are always risks. I think political risk is perhaps even bigger than other risks such as excessive defaults, etc. I wouldn't be surprised to see the current admin really hammer them hard sooner or later. Dodd Frank is bad enough for lenders, but I can certainly get even worse.
I would advise against it for the long term. There is just so much uncertainty. Many analysts are predicting another financial crash. With things in Russia getting worse, I can't see how they are that far off.
MA is only yielding 0.62% which is unacceptable to me for a financial stock. V similarly is only yielding 0.79%. I also wonder about regulation. It certainly looks to me like there are antitrust concerns, for example.
Hmmm, looks like the majority of you are cautious about credit card stocks. Do you guys care to name some other more stable stocks for the long term then? I though CC stocks would be a good bet since they aren't going away anytime soon.
I do like several of them myself. Good as a small part of a balanced portfolio. Some of the largest and most stable financial institutions in the world are in the credit card business.