Displaying items by tag: mastercard
Standard Life analyst Andrew Milligan made two great calls this time last year. He picked Microsoft and Equinix as two breakthrough stocks for 2019. They rose 55% and 64% respectively so far this year. Now he has his 2020 picks ready. Milligan says to take a look at Visa, Mastercard, and 5G companies like Marvell technology. He also still likes Microsoft, for what that is worth.
FINSUM: We like the call on 5G. The new tech has sort of been in the background of mainstream investing consciousness, but next year could be when it explodes to the forefront.
Over the last several years consumer credit markets have experienced a huge boom. As the economy started to pick up pace, consumers abandoned the deleveraging that characterized the Great Recession and started to use more credit. This led to a boom in profitability for credit card companies. However, that era has now come to an end. “The easy money has been made in card lending”, says a consumer finance analyst at Wells Fargo. Battles over ever lower rates for consumers as well as the cost of competing by offering rewards has challenged the landscape.
FINSUM: We definitely think the credit card boom as over as consumers have wisened up and have many more good options.