“Travel stocks are ‘very vulnerable to a sell-off’ heading into Thanksgiving, trader warns”
November 23, 2020
“From escalating tensions between the U.S. and China, the highly infectious coronavirus pandemic outbreak, and the 2020 presidential Election, this year has turned into a rollercoaster ride for investors. Forced lockdowns weighed down industries like the oil & gas sector, retail businesses, theatre, and entertainment companies, but spurred an uptick in technology stocks.
With Pfizer Inc. (NYSE: PFE) and Moderna Inc. (NASDAQ: MRNA) reporting high efficacy for their COVID-19 vaccines but the number of new virus cases getting reported remaining high, the analysts are expecting a change in market behavior as the world moves to what they describe as a post-COVID-19 world…”
It should be obvious that travel stock will be down. Many folks are scared of the virus and lockdowns will hinder sections of the economy for obvious reason. That being said the holiday season is coming up so there will be an increase in consumerism. It just wont be comparable to last year.
Combine this with the fact many companies bank on black Friday and we have a situation where many companies will be in the red this year instead of the black. Meaning they’re going to lose money.