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American Express Poised for Big Growth

Jason Jenkins
February 4, 2014

In 2013, American Express (NYSE: AXP) was the second best performing stock on the Dow, gaining nearly 58% for the year through taking advantage of increased household wealth and consumer confidence. In addition, American Express doubled their profit in the fourth quarter as affluent customers spent more during the holidays while defaulting on fewer payments. 

As you look at these impressive numbers, you have to ask yourself, "Did I miss the boat?" According to forecasts from the World Bank, this ride should continue for a while.

January 14: World Bank raises its growth forecasts

For the first time in quite a while, the World Bank doesn't see an immediate ominous cloud lurking ready to destroy our entire global economy. Instead, it's just a little overcast - which is OK, compared to the last five years.

The report states that 2014 should bring about a growing U.S. economy, a Europe that has bottomed out, and an invigorated Japan. In short, the developed world will be making a comeback: the forecast for the wealthiest nations was raised from 2% to 2.2%. 

Global growth is forecast to rise to 3.2% in 2014, from last year's 2.4%. Even more encouraging, this level of growth should be maintained until 2016. 

According to the President of the World Bank, Jim Yong Kim, "The performance of advanced economies is gaining momentum, and this should support stronger growth in developing countries,"

To get specific, how is the good ole U.S.A looking? The Bank