Higher interest rates typically benefit lenders as the higher rates can provide more margin for loans and credit repayments.
Furthermore, VISA’s CFO said in January this year tha business trends are remarkably stable and that the company are planning on no impact of a US recession this year on the company.
So, with April a strong month for many on the major indices will VISA shares rise in line with its strong seasonal pattern this year?
Over the last 10 years the company has gained every single time between April 11 and June 07 for an average return of 7.30%.
So, will VISA shares gain again this year?
Major Trade Risks:
The major trade risk here is that a very hard US recession impacts the jobs markets. Customers losing jobs can result in an uptick of credit card delinquency rates as re-payments are missed.
Remember, don’t just trade it, but Seasonax it!