Brains
The COVID-19 pandemic has spread to over 100 countries and governments everywhere are implementing strict travel restrictions. As a result, “Beach” stocks, companies in the entertainment and travel sectors, have seen a $332 billion market loss in the past month, Visual Capitalist reports. Beach stocks are companies involved with:
Booking
Entertainment & live events
Airlines
Cruises and Casinos
Hotels & Resorts
The global airline industry alone has lost $157 billion spread across 116 publicly traded airlines. Investor confidence is low and the cruise line industry is getting hit especially hard. Norwegian Cruises has lost 72% of its revenue stream since the beginning of the pandemic.
The ski industry is getting hammered as well as now all North American and European ski resorts are closed for the 2019/20 ski season. Vail Resorts is reporting a 41% loss in revenue as they furlough employees and delay summer construction projects. This all makes us wonder — Will BEACH industries like ski resorts and airlines quickly bounce back when infection rates drop, or will it be a slow and painful recovery?
