To The Moon

$MasterCard(MA)$$Visa(V)$$American Express(AXP)$

These stocks are highly correlated with one another in terms of earnings and share pricemovements. This quarter, these payments companies have performed very well in light of the current geopolitical crisis and lockdowns. While other stocks have suffered, these stocks emerged stronger. Warren Buffett is heavily invested in American Express.

Now, should we enter these stocks at this stage? My advice is to wait for the stocks to decline after a couple of weeks, especially once we get further clarity about the rate hikes and the lockdowns. These stocks have enjoyed quite a boom and I do not think the entry price is favourable. They are still rather good stocks as given the travel recovery, cross border flows would pick up which would inevitably benefits payments firms. Further, "revenge travel" is currently happening whereby people are eager to travel regardless of costs as they have been so deprived. Lastly, given the innovations each payments firm have decided to pursue (e.g. crypto and fintech), the long run prospects Of these firms remain positive :)

DYODD