Don’t get cute... here’s the surefire way to play the recovery from COVI D

[RiskHedge Roundup] America is reopening fast. … so what does it mean for your money? Turn on CNBC or CNN and you’ll probably hear the term “re-open trade.” In short, many people say the stocks that were left for dead during the lockdowns (think cruiselines, airlines, movie theaters, etc)… will rebound in a big way as America gets back to normal. This strategy could certainly pay off in the short term. But Chief Analyst Stephen McBride says there’s no reason to get “cute.” If you want a nearly sure-fire bet that’ll make you money over the long haul… look no futher than credit card duopoly Visa (V) and MasterCard (MA). Unlike the cruise and airline stocks you’re probably hearing about… V and MA had a very solid 2020, finishing up 18% and 15%, respectively. More importantly, they’ve kept the momentum going in 2021, both recently striking all-time highs: Source: YahooFinance And Stephen says to expect more of the same for the rest of 2021 and beyond as cooped-up Americans eagerly spend all the money they’ve saved over the last year. If you’ve been following along, you know V and MA are the driving force behind the disruption of money. Stephen calls them [the ultimate “tollbooth” stocks](. Stephen: It hardly matters what bank you use. At the end of the day, your card likely needs Visa or Mastercard’s payment network to function. And 2021 is shaping up to be a great year for the duopoly. According to a new report from card processor FIS, electronic payments edged out dirty old cash for the first time ever last year. And a record $5.5 trillion flowed through Visa and Mastercard’s payment rails in 2020. So… what’s in store for 2021 as America and the rest of the world fully reopens? Stephen again: From talking with friends on both sides of the pond, I can tell they’re itching to go on vacation. One of my colleagues has already booked two trips. Family members in Ireland have thousands of dollars in flight refunds they can’t wait to spend. In short, we’re looking at the wildest summer in decades. We’ll most likely see a “catch-up” where people are getting in all the travel they’ve missed. Passengers will be packed like sardines at airports this summer. Will this boost certain airline and hotel stocks? Sure, I guess. But those are cyclical “boom/bust” businesses. If you own their stocks, you must monitor them very carefully—and be ready to cut them loose when their bull run starts to roll over... Visa and Mastercard are the opposite. They’re incredible businesses. They have a chokehold on global payments. They earn a cut of millions of transactions a year. Just like airlines and hotel stocks... they’ll benefit from the “great reopening.” And five years from now, when COVID is a distant memory, you’ll be happy you bought Visa and Mastercard. Both are buys today. Chris Reilly Executive Editor, RiskHedge This email was sent to {EMAIL} as part of your subscription to RiskHedge Report. To opt-out, please visit the [unsubscribe page](. [READ IMPORTANT DISCLOSURES HERE.]( YOUR USE OF THESE MATERIALS IS SUBJECT TO THE TERMS OF THESE DISCLOSURES. Copyright © 2021 RiskHedge. All Rights Reserved RiskHedge | PO Box 1423 | Stowe, VT 05672