Airplane And Cruise Stocks

If you want to make money invest in airplane and cruise stocks like Easyjet and Carnival they are so cheap right now so you will get big returns when things go back to normal it’s pretty much free money.

I’d be on the side of caution.

All of the bailout money will need to be paid back, meaning no future dividends for a long while.
The share prices may increase, although I think in relation to the other stocks there could be easier money to be made in other fields.

VIX level is still high, indicating that we are experiencing still uncertain times and fear remains in the market.

Plus, there was a flight from Spain recently and all the passengers had to go into quarantine because mid flight someone tested positive for coronavirus. So if things like this keep happening, it’s risky for sure. Potentially catastrophic for a cruise liner.

That said, long term holding positions will do well. I’m sure.
If you feel like having a go though, I’d bank on DAL / LUV / CCL to come back to previous strengths, but it might take a while.

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Easyjet is going to resume flights to hundreds of destinations soon so could be worth investing in.

So just put all your life savings on them and come back here after a while to tell us :wink:

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It’s good in moderation :slightly_smiling_face:

Every airline is losing millions every day, it is a business with really thin margins.
Summer is the season when they charge premium and make most of their money and this year it is already lost.

Some of them will not survive until September. And there is a little chance to guess which ones.

Be prepared to be Thomas Cook’ed.

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Bought in March when the big drop happened and sold them by now for a cool profit. The way the overall market is acting has made me lose all confidence in it. I know it’s been said hundreds of times by now but… I feel there will be another crash. Until then, Im out

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@CaptainDangernoodle
Agreed.

The whole market uptick is just from the injection of new cash from the FED, the introduction to investing for the masses byway of 0 commission trading and the deflationary effect which will come byway of cheaper goods to the consumer. Added in the fact that interest rates are bleak at best, there is no other option other than stocks.

Did just like you and sold my Airlines for a quick profit.
Now banking on OIL to carry on up for another profit.

Really getting the vibes that another crash is due. Kind of making me impatient though waiting lol.

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One thing that is puzzling, everyone is expecting this crash. Usually market does the opposite of what majority expects…

Will be interesting to see how things develop…

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Ah, Oil did peak my interest, but not having access to USO, and the whole NAT pump and dump debacle has made me shift focus towards gold. However, if T212 decides to one day add some of the other oil tanker stocks (coughas asked a month agocough) I do like the idea of hopping in and out for their 10%+ dividends.
How are you playing oil, with that Wisdomtree ETF or through the CFD account?

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As adm pointed out, the market is being propped up by the FED buying corporate bond ETFs, which is only a monetary (and momentary) solution. These companies with their subpar earnings will have to start paying back the debt.
The other reason the market is up is just a couple big Tech companies that have been weathering and even thriving in the storm, hence Nasdaq being the best performing of the big indices. Now there’s a general sense of optimism (at least before the riots started) for all the countries reopening… again, not based on any reality. It’s just momentary hopefulness.
Don’t want to be doom and gloom, but all it takes is the market catching up with the economy and you got yourself another crash.

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Again, I am not talking about fundamentals, Economy or disconnect. Just history teaching us that usually market doesn’t do what majority expects… I would expect that until majority jump on the fomo train, there won’t be a major decline…

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Flipped WTI Oil (OD7F) for a quick profit but sold WAY too early. Ah well.

Traded Helmrich and Payne (HP) multiple times and made a bit of pocket change on that one.

Got BP and Royal Dutch Shell positions open right now, doing well.

Just using £100 - £200 bets on each, nothing that will ruin the portfolio, but nice little profits which add up.

I agree with what @Vedran mentioned though, the whole market is going up because everyone is waiting lmao.

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This week was the biggest gains on German DAX in many many years… I’m glad that I’m not out waiting for something that can take 6 months to happen… and when/IF it happens, I will buy even more :smiling_imp:

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and btw… I won’t do it personally, but If I have to bet my money on an Airline, it would be Lufthansa… the German government taking a bite of it make it less unlikely to be dead soon.

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Ironically enough I saw a news article saying Lifthansa was taking a 2B euro hit and is in need of a dire restructure.

I had DAL / LUV / AAL / IAG / TUI / + Lufthansa recently but couldn’t hold my nerve and sold at little profits lmao

:smiley: Who knows though, im sure they will come back to greatness. How long though is another question :smiley:

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That would such an irresponsible action. The man knew he was at risk of having the virus, he should have never boarded the plane! :angry:
Not the whole plane was quarantined, I think it was only around 15 passengers, but he has wrecked those people’s next 2 weeks. I do not know what the laws regarding this are in Spain, but he should (and hopefully will be) fined.

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I wouldn’t be so confident about free money. I’ve got a large portion of my portfolio in airlines and travel and yes it’s been doing fantastic for the past couple of months, but the way I see it, you are essentially acting as insurance: if things go back to normal then of course it’s great but if all the planes are only at half capacity, or there’s a second wave, nobody will be able to travel and there will be plenty of airlines going bust!

There’s no such thing as free money! Except when you recommend a friend to Trading212, of course…

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I agree I think it’s somewhat good that people are cautious to invest in airlines hopefully just means more money for us.

I’d go with JetBlue I think they have strong balance sheet