How to play markets p.5

Travel stocks to continue to benefit from low oil?

Most of us are consumers of energy, which means falling oil prices are a dream. The only thing they’re not a dream for are oil companies. So ignore oil companies. What type of company is a heavy user of fuel?

While much of the investment world was feeling the commodity price downturn as a nasty little alien growing in its stomach, those who invested in travel companies saw 7 of the eight UK 100 travel stocks outperform the index with Carnival (CCL) and International Consolidated Airlines (IAG) going up a staggering 32% and 25% respectively. I’m sorry; did someone really say equity markets suffered in 2015?

What’s new?

Well, oil’s still falling because nothing’s changed to reverse that state of affairs. Was 2015 an overly bullish year for the markets? Could we see a correction back to more realistic levels? The second half of 2015 was 6 months of almost pure fear and uncertainty. That 4/5 of the UK 100 ’s components outperformed the index is amazing, quite frankly.

Carnival (CCL) Travel & Leisure

Carnival PLC (-)

Carnival shares are cruising into 2016. Will they continue to make new highs, or are they overloaded?

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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