Declining consumer confidence lowers consumption expectations for 2023. Despite this, the stock market sector of the Travel & Leisure seems to have started the year strong bullish sprint. According to some analysts, in fact, tourism could reasonably bear the weight of the global economic deterioration.
The interest in tourism-related stocks is growing on the stock market
2022 has been an unfulfilling year for investors stock market as most of the sectors recorded important losses. The 2023 it will most likely have to do with the aftermath of central bank monetary policy: the inflation rate starting to fall, interest rate hikes halting, and an economic slowdown.
There consumer confidence appears to have returned close to the values recorded in the crisis of 2008 and at the moment there are no major reductions in the euro area linked to the inflation rate. It therefore seems obvious to ask how the sector of tourism interest an investor in 2023 given that it will be plausible – moreover – to expect a drop in consumption.
In Morningstar’s opinion, it is necessary to look at other types of variables, more related to the component social And psychological of individuals. Indeed, the lockdown has made it possible to accumulate extra savings for families which, according to the data, seem to have largely been destined for tourism. There travel question in Europe it has in fact exceeded pre-pandemic levels. Also, although experts predict a reduction of consumption on the part of households, the skyrocketing cost of airline tickets is not having a substantial negative effect on their demand. According to the Transportation Security Administration USA, the number of passengers is doubled between June and November 2022 together with employment rate in hotels.
Traver & Leisure: what to expect from global stock exchanges?
With the stroke of 2023, the US and European indices linked to the sector of the Traver & Leisure they embarked on a journey bullish which overall made the global index gain more than 25%. For this reason, many investors have recently shown a particular interest in the sector, as can be seen from the volumes of bag.
From a technical point of view, the global index continues to show clear signs of force. The price is kept well away from its own simple moving average at 21 periods on a weekly timeframe, using it as a dynamic support. Two component stocks of the index are arousing particular interest at a volume level: Expedia Group And Carnival. Both companies present P/E enticing even if they are currently in a graphic area of overbought. Although technically it might be wise to wait a retracementMorningstar argues that the market is not fully pricing in the strong request travel globally and the impact it could have on stocks like Expedia and Carnival.
Nasdaq Global Travel & Leisure Index
Weekly candlestick chart of the Nasdaq Global Travel & Leisure Index
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