The broad conditions for equity buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus mean conditions are suitable for further equity gains.

Will VISA move higher in keeping with its very strong seasonal pattern? Over the last 10 years, VISA has gained in value every single year between the dates of May 14 and July 27. The largest gain was in 2019 with a +14.59% profit. Although economic restrictions have been in place many digital transactions have taken place. The large amounts of US stimulus cheques have resulted in a large boost to March’s US retail sales data. Will the extra spending also help lift VISA’s share price?

Major Trade Risks:

• The main risk to this trade is from any risk-off tones which will weigh on equity prices.
• A fast rise in US inflation could result in bond tapering which would potentially weaken VISA’s stock price.