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Bear vs Bull Stock Market?

What is a bull and bear market??

A bull or bullish market occurs when stock prices? are generally rising or are expected to rise. It is often? characterized by optimism among market participants,? high levels of investor confidence, and expectations that? strong results should continue for an extended period. It? is often supported by a positive economic performance? and outlook, which fuels investor demand for assets such? as stocks. A market is usually not considered a true bull? market unless it has risen 20% or more from its most? recent low. Prior to the pandemic the Jamaican stock? market was bullish.??

However, since then, the economic effects of the? pandemic, followed by the elevated inflation and interest? rate environment have caused the market to turn bearish.? A bear market is the opposite of a bull market. During bear? markets, stock prices can fall and remain depressed for? prolonged periods amid negative investor sentiments and? pessimism. A market is usually not considered a true bear? market unless it has declined 20% or more from its most? recent high. The most recent bearish market started on? March 10 and is currently ongoing.?

Tourism Boom Driving Financial Rebound in? Dependent Companies?

Following the steep decline during the pandemic, the? tourism sector has seen a sharp rebound, and the near? to medium-term outlook for the sector is positive. Locally? tourism has grown for the past 9 consecutive quarters by? an average of 87.3%. The desire of consumers to travel? after almost 2 years of home confinement because of the? pandemic has helped to fuel the demand. More flexible? work schedules thanks to remote and hybrid work models? coming out of the pandemic are also fuelling the possibility? of and demand for year-round travel. The sector has also? been witnessing historic summer tourism performance,? influenced by the aforementioned, as well as the ability to? enjoy the region without the luxury price tag, as plane and? hotel costs are cheaper during the summer months. Due? to these factors, as well as the strong labour markets in? source countries such as the US, UK, and Canada, hotel? expansions, and increased airlifts, Jamaica is expected to? see a return of stopover arrivals to pre-pandemic levels by? the end of this fiscal year, with overall earnings forecasted? to increase by 10.8% year over year to US$4.1Bn.?

Given the strong rebound and favourable outlook for the? sector, tourism-reliant companies such as Caribbean? Producers of Jamaica, Express Catering Limited, and? Knutsford Express, are recording recovery in earnings and/ or making investments to benefit from the positive outlook? for the sector.?

Buying a stock is easy, but buying the right stock without? doing your homework can cost you. So, we have done the? research for you. Here are the best stock picks from the? Tourism Sector:?

Contact [email protected] or your wealth advisor? for further assistance and in depth analyses on these? companies, including performance, return potential and? potential risks.

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Disclaimer: Investing involves risk. Prospective? Investors should carefully consider investment? objectives and consult with professional advisors before? making any investment decision.