"American Express Posts Profit of 56 Cents a Share, Well Below Estimates. Stock Down Sharply After-Hours."
This breaking news headline comes from CNBC.com and gives a pretty big jolt to those who feel or felt that upper-end consumers (most American Express cardholders for example) are somehow insulated from the economic conditions of the past several months. While I would not consider myself a high-end consumer, I've been doing my part and paying my AmEx bill each and every month but apparently that is not the case across the board as they are seeing higher delinquency rates on issued cards.
While things will likely turnaround at some point, things are clearly not as they were just a short time ago. And unlike the early 1980s, for example, it's hard to imagine how we could have 25 years of declining tax and interest rates ahead of us.
"What's getting people nervous is seeing this downturn affect their top super prime customers," said Paul Hickey, co-founder of Bespoke Investment Group. "While it is not surprising that no one is insulated from the crisis, everyone is really concentrating on how even the best of the best aren't doing so hot. It makes people a little weary."
Don't forget to check back to Dan's Deep Creek Blog for future updates.
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