Bought: Visa (V)

I bought stock in Visa. This company needs no introduction. Chances are if you open up your purse or wallet, you'll find a Visa-branded credit card. You know Visa. I know Visa. Here's the unofficial 'About Visa' description anyhow.

V is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, gift cards, and debit cards. Visa does not issue cards, extend credit or set rates and fees for consumers; rather, Visa provides financial institutions with Visa-branded payment products that they then use to offer credit, debit, prepaid and cash-access programs to their customers.

This is not the first time I've owned Visa. Oftentimes, I sell covered calls against my stocks and I recall that my holdings in V were assigned at some point. 

Besides being a cash machine in normal times, the fact that we are in a rising interest rate environment will only garner Visa more money.

I've explained on here many times that we live in a credit card world. Credit card debt has grown almost every single year in America and probably the world. With debt comes interest and fees and the more debt there is, the more money in interest and fees that credit card companies like Visa, Mastercard, Capital One and others make. 

Credit card debt interest rates are variable. This means the interest rate debtors pay on their debt can rise or decline. If you carry a credit card balance like many people do, when interest rates rise, you're going to pay more money in interest charges to the credit card companies. 

We are living in a world where interest rates are rising and seem to continue to rise in the near future. The Federal Reserve, who controls the Fed Funds Rate has said that interest rates have not reached neutrality. This means they are going to raise interest rates until the Fed thinks that interest rates are at a fair level. 

This means companies like Visa are going to make even more money! I'm hopping aboard this train. 

As are all of the stocks in my IRA portfolios, V is an investment, not a trade. While the stock will fluctuate up and down like all stocks do, it is my opinion that the stock goes up near and long term.
Disclosure: I am long V

I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My opinions and strategies of the are not intended to ever be a recommendation to buy or sell a security. The strategies I use have worked for me and it is 100% for you to decide if it could benefit your financial future. Please remember to do your own research and know your risk tolerance.