Bad news for cruise lines…
The CDC has rolled back on its no-sailing ban lift.
Well, we saw it coming, but cruise lines just made it official. Despite the hope many Americans and companies had for a bounceback in the industry, U.S. cruise lines have canceled sailings through at least the end of 2020.
Recently, the Centers for Disease Control and Prevention technically lifted the ban on sailings to and from U.S. ports – but with the number of cases increasing rapidly across the globe – they’ve flipped that decision. And now, the CDC has announced a new game plan for resuming sailing in 2021.
And they have good reason to make this decision too…
Where’s the money?
Cruises nearly halted all sailing back in March following the outbreak of the pandemic. And the U.S. hoped to resume all sailing by December 1. But it looks like we won’t be seeing any boats leaving the port anytime soon.
Other countries have begun to loosen their grip on their lockdown measures, allowing cruise ships to resume sailings. But recent outbreaks on ships overseas provide evidence that travel on a cruise ship is the perfect stop for transmission of Covid-19 – even with reduced passenger capacity. But the industry hasn’t given up hope just yet.
Following this announcement, the Cruise Lines International Association, the industry trade group, announced that they would work with the CDC to resume sailings as soon as possible. But despite the promises, many investors are scrambling to make their next move.
Here’s what I’ll be doing instead…
How do I get some?
It’s really no surprise to see the U.S. pullback on their decision to allow cruise ships to sail, seeing that the number over Covid-19 cases continues to spike. But what is surprising is to see so many investors deciding this “breaking news” story.
For me personally, my first question is this: is this even an important decision when it comes to my bottom dollar? The answer is: I don’t think we can answer that yet. I believe that the election will have an impact on how crucial this decision is for the market. Each candidate comes with different plans and angles that could impact the future of the cruise line business.
And that’s precisely why I’ll be waiting on the sidelines before I decide to take a position in this sector – and it’s why I think you should wait too.
In the spotlight: Solar stocks are on the rise…
After years in the dark, solar socks are finally seeing their say in the sun on Wall Street. Sunrun is America’s largest rooftop solar company, and over 2020 it has spiked more than 300%. Invesco Solar ETF, the exchange-traded fund that tracks the investment results of the MAC Global Solar Energy Index, has also doubled.
And much of this hope is fueled by the current election leading to a shift in focus to renewable energy and handling global warming. On the other side of the coin, investors have been dumping fossil fuel stocks over the last few months. In particular, we’ve seen Big Oil companies bein crushed by the rise of environmental, social, and corporate governance (ESG) and the growth of socially conscious investing.
For example, ExxonMobil used to be the largest energy company by market value – but that’s no longer the case. In fact, the energy giant was dethroned recently by a solar and wind company called NextEra – Energy – another testament to the constant growth in the renewable energy sector.
This growth and the potential for more is exactly why I’ll be keeping a close eye on this sector in the future. Because I believe some massive opportunities will grow from this industry – and I’ll be sure to keep you updated.
False Alarm. But…
It looks like all that optimism about cruise – and other travel – stocks might have to be put on hold until there’s a significant drop in Covid-19 cases, or better yet, a vaccine.
The good news is that I just heard about a new game-changing deal signed by the U.S. government for a breakthrough development being hailed as the “Super Vaccine.”
When all is said and done, the company behind it could be on track to launch a 58,300% revenue surge in only a year’s time!
Read the full story right now.