Is it time for investment in entertainment companies?
Is it time for investment in entertainment companies?
May 6, 2020
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Is it time for investment in entertainment companies? |
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News:
| We expect very slowly recovery of the tourism industry. The people
will not restart travel like before. They will spend many months or even
years to cover the losses during the quarantine. Also they will try to
make a buffer for eventually new bad days.
Loans, losses recovery and making a buffer will take a lot of time. We
predict recovery at about 55-65% of the levels before the pandemic in
the middle of 2021.
The unemployment will remain too high especially in United States so the
entertainment and tourism industry will remain in very slow growth from
the zero in many years.
The investments in new entertainment industry like hotels, restaurants,
cinemas, tourist products stay with not chance for gains.
The investments in companies in these sectors is remain very risky
because the bottom is far away may be in 2021. Hotels, restaurants,
cinemas, tour operators, cruise ships are going to close although the
lift of some restrictions. Some of the companies may open again but the
incomes will not cover the spending and is on the way to start second
wave of bankruptcy.
[World-Signals.com][1] strategy is to avoid investments in these sectors
at least till the end of 2020.
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- www.world-signals.com (www.world-signals.com)