Is It Time To Take Profits on Cruise and Airline Stocks?
I’d first like to offer a quick happy Thanksgiving holiday to everyone! My wife, Joan, and I decided to stay home with our son, Joseph, instead of travel this year. Whether you decided to do the same or otherwise, cherish the time you have with your family and friends.
Thanksgiving is also a great day to reflect on where we’ve been and where we’re going with our stock picks. So often, people like me recommend stocks… but they never go back and review their picks. So if you bought something someone else recommended, how do you know when it’s time to sell? And that’s where we’re at today, with many wondering if it’s time to sell travel stocks.
I’ve recommended a number of financial and energy stocks the past few months. They’re doing great so we’ll let them keep running. I expect they will continue to outperform the market in the months ahead.
But back on Aug. 13, I made a call for cruise line stocks in a video hosted by WealthPress Head Trader Roger Scott. This was a contrarian pick. I still hear people say, “Cruise stocks? Why would you ever buy these during a pandemic?”
But as I noted in the video, cruise stocks were so beaten down and so cheap, they were due for a bounce. Three months later, we’re up 25% on Carnival Corp. (NYSE: CCL) and 35% on Royal Caribbean Cruises Ltd. (NYSE: RCL).
I’ll take a bounce like that any day!
Is It Time To Sell Travel Stocks?
That said, it’s time to take profits and sell travel stocks in the cruise line industry. The big reason is these stocks are now due for a pullback — and all the better after Tuesday’s big bounce. Especially for RCL, which is way above its 200-day moving average.
It also looks like neither company is going to have any U.S. sailings in the first quarter of 2021. That will be an excuse for Wall Street to say it’s time to sell travel stocks like this as we move to the end of the year — sell now and buy the coming dip later.
So what about another contrarian pick of mine, airline stocks?
Check out my short video below and let’s discuss whether it’s time to sell travel stocks like airlines after the big recent pop we saw. Were you able to get some travel stocks on the cheap? Share your thoughts below.
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