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Visa: Upside Potential For An Uncertain Economy

Craig Blanchfield, CFA profile picture
Craig Blanchfield, CFA


  • Consumer spending and transactions continue to grow in the U.S. and abroad despite macroeconomic uncertainties.
  • The consumer remains strong with debt service levels below long-run averages despite record revolving debt balances.
  • Visa’s brand strength combined with network effects creates a wide moat that protects the business’ incredible margins and returns on equity.

VISA credit card

sinopics/iStock Unreleased via Getty Images

As inflation recedes, driven in large part by tightening monetary policy and waning consumer demand, it is not unreasonable to expect a recession to occur in the U.S. While I would expect any recession to be relatively

This article was written by

Craig Blanchfield, CFA profile picture
As a professional portfolio manager and investment analyst, I advise clients on all aspects of investment strategy, asset allocation, and investment selection. With experience at both wire houses and RIAs, I have worked extensively with high net worth individuals, successful families, and non-profit institutions. My focus has always been to educate clients on the benefit of maintaining a long-term view that is goal-oriented, and insulated from the day-to-day noise. I believe that investors who base portfolio construction on a durable strategy, while avoiding tactical moves, are best served and will realize a more favorable investment experience. In addition to my professional experience, I have also earned an MS in finance, BA in economics, and hold the CFA designation. The opinions expressed here are my own and not that of my employer.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of V, AMZN, SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Thanks for the article and some ‘to the point’ data. Long term V holder and will probably never sell. My own personal Toll Booth….
V business model is difficult to beat, and the margins are outstanding. Management is keeping ahead and anticipates future technology. I am long V. Thanks for the article.
Nick Langman profile picture
Great article. Thanks
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