The Federal Reserve are on a rate hiking cycle and the increase in interest rates can help financial companies that charge interest rates on loans. The higher interest rate charges can result in higher profit margins for the companies on their lending sector of their business.
Will higher interest rates boost profitability for shares like American Express? The seasonal pattern for American Express is strong over the next month. Between May 12 and June 10 American Express shares have gained 8 times in the last 10 years. The average return has been +5.53% and the annualised return has been an impressive 97.88%.
More American Express gains again this year? Major Trade Risks: Investors should be aware that if significant economic strain emerges on consumers then the risk of defaulting on payments also rises.
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