Monday, May 2, 2016

FinTech

There is a lot of talk today about "FinTech", or basically "Financial Technology".  A lot of it can be contributed to this video from CBS 60 Minutes which recently highlighted a company called Stripe. You can watch the video here


I don't think most people don't realize how far off the financial industry(banks) is from historical highs.  We can see from the XLF ETF that financials are still well below their 2008 high near $32. That actually seems like a warning signal to me considering the S&P has already surpassed its historical highs.




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The portfolio is in a way heavy on "FinTech". PayPal comes to mind here. I'd consider Visa, MasterCard and Global Payments as more traditional financial technology.  This is a big industry overall with plenty of players FYI. Also not all "FinTech" is created equal.  There are a variety of sub sectors within this industry.  Kind of like the PC industry where you have multiple companies comprising many different niches.

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