One of the key questions for US investors right now is whether or not US growth has started to show signs of slowing. Furthermore, are the signs of growth slowing so serious that US stocks are poised to take another leg lower? Ultimately that question will be answered as more US economic data comes in, but it is worth looking at stocks that tend to do well as interest rates rise with the Fed poised to potentially hike rates up to 9 times this year according to interest rate probability markets.
Between March 30 and April 28, over the last 14 years, American Express has risen 11 times with an average return of 4.61%. Will American Express rise again this year or will slowing US growth harm the outlook for the financial stock?
Major Trade Risks: If US growth does show signs of slowing, but the Fed has to hike rates in order to contain high inflation, that results in a stagflationary environment that tends to give financial stock like American Express a poor outlook.