The Securities & Exchange Commission is known to regularly fine Barclays for financial crimes that include money laundering, and the well-known LIBOR Scandal. Questionable investment advice has been issued by Barclays, which is recommending retail investors purchase stocks with cruise liners like the Royal Caribbean & Carnival Co.
On paper, the concept of purchasing cruise line shares isn’t ridiculous. The No-Sail order has dropped the price of stocks for Norwegian Cruise Lines, Royal Caribbean, Disney Cruises, Carnival Co, and numerous others. That No-Sail order has a little chance of being lifted in the United States before November, and in the European Union. Cruise lines would begin sustaining standard stock valuations & investors that purchased at the low could profit at the highs.
Investment periods of uncertainty hold different merits, with individual investors believing it’s the correct perspective & other strategizing it’ll lead to an unlikely turnover. Conventionally, markets that reach drastic lows struggle to regain former margins & their respective stocks aren’t valued at high prices. That hasn’t been the case for cruise line stocks, which are still sustaining large margins in-comparison to competing shares from other tourist industries.
There’s one travel industry that’s sustaining consistent operation, with that being airlines. They’ve failed to regain consumer attention & continue to fight uphill battles that are seeing dwindling profits. TSA Data indicates that travellers are engaging with airlines at 1/4th the rate from 2019. Similar losses with consumer interest are expected for the cruise industry from 2020 to 2023. This means investors that listen to the advice of Barclay’s could wait years for a notable return.
Watch the Signs
In hopes to deter investors from selecting another stock, the cruise industry has regularly released surveys that show consumer interest is still at all-time highs. For that at-home that are truly pent up, they’ll risk cruising on the open ocean. However, the majority wouldn’t go through with purchasing a tourism package with Royal Caribbean or Carnival Co.
When accounting for all these financial & tourism factors, the advice of Barclay’s to invest in the cruise industry is baffling. It begs the question if Barclay’s has received monetary compensation from unknown entities for spewing this incorrect investment advice.