Investing in stocks during a global pandemic may seem like a big risk right now, but it might pay off in the long run. With large industries recovering from the recent economic collapse, putting money into the stock market may be another outlet for generating a bit of extra income. There are certain industries that may be more profitable during the present stabilization of the market.
Although we may be tempted to look into more relevant stocks including streaming services like Roku and Netflix, Ubereats and GrubHub and Zoom, think long-term. Obviously, unemployment or the stimulus checks will not last through the summer, but once the pandemic is over, the coronavirus will leave people even sicker with the travel bug.
Travel may just be one of the most highly affected and potentially profitable markets at the moment. Airlines, cruise ships and automobile production have reached a screeching halt, and refuse to go down without a fight.
According to a financial advice service called Motley Fool, airline stocks have lost more than half of their value due to COVID-19. A Marketwatch graph showed that an individual share of American Airlines cost about $28 in late February and is now sitting at a staggering $12.
Despite the Center for Disease Control and Prevention placing a no-sail order, cruise line investors are not pulling out completely. A Yahoo Finance article mentioned that once governments allow countries to reopen, cruises will follow suit. Many ships are not set to depart until Sept. 8, but this risky investment has already paid off for investors. Companies like Carnival, Norwegian and Royal Caribbean have seen their stocks soar in just the past week.
It may seem like a big financial risk to invest in travel while the entire world is being told to stay home. However, travel is an industry that will never die because people have places to be and people to see. Even if you buy one $12 stock of American Airlines today, and let’s say by next October the price goes back up to $30, you have just made a 250% profit on your investment. The present day loss of money may seem bleak, but doubling your money for a future investment may just be worth it.