Stocks Soar - Highest in 90 Years
Chinese stocks got pounded overnight Monday. AFP/Getty Images
The last three days have proven to be incredible for those investing in the stock market. Due to the stimulus package passed this week, businesses will be receiving loans and grants to prevent them from going bankrupt. This, in essence, has greatly lowered the risk of losing any investments - as was the worry earlier this week.
When coronavirus became a threat to the United States, the economy tanked. Stocks plunged up to 13% per day, which was the largest 1-day drop in history.
Travel restrictions, closed business, bans on travel, and the threat of exposure to the deadly Coronavirus has plunged the economy into a state of panic. Now with the funding package launched and the economy temporarily recovering, it's still a good time to invest.
A few days ago, we recommended people buy into hearty entertainment stock like Disney, but the options were vast. The market was so low that as long as the company didn't fail there was almost a guaranteed return on the investment. Those that did invest in Disney when we recommended saw a 14% return. With everything on the rise, investments must be a bit more tactical today.
The industry recommendations are still the same - entertainment and travel. Hotels and resorts are still great investments, but the more stable investment would be hotels. Once the economy recovers, people will be travelling for business before they start travelling for leisure. Our recommendations would be to invest in WYNN (Wynn resorts), which have steadily sold for 2x their current price for over the last year, or WH (Wyndham) which have also steadily sold for 2x their current market price. Both companies are large enough to bet a safe investment until the market recovers.
And...when this is all over, you can sell your stock and go spend a week at the resort!