credit card stocks

Discussion in 'Stock Market Forum' started by yossup, Apr 2, 2014.

  1. yossup

    yossup Member

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    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.
     
  2. canoe

    canoe Active Member

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    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.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    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.
     
  4. Rosyrain

    Rosyrain Senior Investor

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    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?
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    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.
     
  6. ursell

    ursell Guest

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    I'm not sure if it is to invest in CC stock for a long period of time.
     
  7. wanderingwildman

    wanderingwildman Well-Known Member

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    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.
     
  8. bms00

    bms00 Member

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    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.
     
  9. yossup

    yossup Member

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    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.
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    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.
     

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