The stocks to buy for when travel opens up again
For many of us, the current COVID-19-induced travel clampdown is obviously a downer. But for investors, the associated pullback in the price of travel stocks – like Corporate Travel and Webjet – could be a golden opportunity. Because, looking ahead, these businesses should thrive once travel opens up again.
With Australia in another lockdown, the prospect of restriction-free travel is pushed further towards the increasingly distant horizon. Even hopes of domestic air travel have been dashed and tourism operators are flat out dealing with cancellations rather than bookings. Consequently, and perhaps unsurprisingly, travel stocks are taking a battering at the time of writing. But as we have seen previously, and as many other geographies are experiencing currently, travel bounces back very quickly. The sell-off in travel stocks is, if nothing else, a glaringly obvious investment opportunity.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
