AXP like Visa facing many headwinds: first there is decline in Credit card use
- Fed reported credit card use decline for the first time last month and I think this trend will continue
- Applications for Refis and New home purchases fell 2 weeks ago to the lowest level in 2 decades and then fel more last week with refi activity down 7% this refi activity is directly related to future credit card use
- Staples warned huge as did many other retailers like panera bread who fell hueg yesterday Staples an indicator of small business activity and very bad for axp customer demographic
- Then there is the emergene of Bitcoin and many other new payment technology platforms al of which are being developed to compete and reduce the highs fee that AXP and V charge and they are coming fast the market will soon discount this in the overpriced stock valuations of axpand v
- Now even Russia is developing it's own credid cards to compete with the current leaders
- The fed is removing the puchbowl stimuls at least for the time being and the market is going to have to correct taking axp with it
- If the market has a good correction more spendign due to the welath effect from the top 5% which account for 40% of spending will ensue and this is squarely in AXP demographic..
So there you have it you are 90 now most wil not listen to what I am saying and wil ride it back down losing most of their gains that is my expectation. I will reference this post in about 90 days to show you I know what I am talking about.