The turmoil in the markets makes it too easy to justify selling any stock these days. Yet while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider credit and debit enabler Visa
At The Motley Fool, we like to consider both the good and bad sides of an investment. Here, I've highlighted three of the main bearish arguments on Visa. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Visa in CAPS.
1. Wallets still tight
Still coping with the economic fallout, consumers aren't freely spending just yet. Overall retail sales are still facing pressure as stores such as Sears Holdings
2. Fees under pressure
Interchange fees have been under pressure from merchants and Congress lately, and they could potentially be modified if certain members of Congress have their way. The fees are paid by retailers and merchants such as Best Buy
Many CAPS members think Visa's shares are trading at too high a premium today. The company has a strong business, with investors expecting strong earnings growth in the years ahead, but current prices for shares already fully reflect this thinking. Many still see a lot of uncertainty in just how the economy will progress from here. And with few signs of a recovery in the credit card industry, strong returns may be difficult to come by at today's prices.
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Fool contributor Dave Mock votes for "three" to be the number of the day. He owns no shares of companies mentioned here. Best Buy is a Stock Advisor recommendation. Best Buy and Sears Holdings are Inside Value selections. The Fool owns shares of Best Buy. The Fool's disclosure policy was on the IOC selection committee but will not reveal its votes.