________________________________
It is tough to argue against the underlying premise of the secular growth story in the credit card space. Without question, we are seeing a massive shift over from paper money to plastic, with most of these credit cards acting as mere toll collectors, assuming little risk but reaping huge rewards. Clearly, the two marquee firms in the credit card space have and continue to be MasterCard and Visa.
Within a secular move, though, we often see short-to-intermediate-term rotations, as the smart money locks in short-term gains when the great bull theme in the sector becomes a bit too obvious. Recently, I have detailed MA and V seeing some relative weakness after being notable leaders to close out 2011. Far from broken, their respective charts remain in overall uptrends, though the recent underperformance is a reason for short-term caution.
Currently, other names in the credit card space are outperforming the two leaders. I am long DFS inside 12631, a stock which I profiled in this December post. American Express also may be coming on here. Within the broad context of a secular growth story, the entire sector usually sees impressive inflows at one point or another (recall cloud-computing names in 2009-2010). However, there are times to rotate out of the leaders into others. As an exercise, compare the charts of AXP DFS versus MA V below.
If the market agrees with the credit card secular growth theme, do not fall asleep on stocks like Amex and Discover.
________________________________
________________________________
________________________________
________________________________
good golly chess…where do u find these pics! thats one fine piece of ACE..
Do you come up with all the post titles? If so, kudos.
Yes, sir. I come up with everything.
you deserve an especially fine glass of bourbon for this one.
now i know,you lead a secret life as a gigolo. hard to think about a chart after that cw…damn
Wow, nice one!
The usual Hot Pussy pics. Ya got a million of em.