The article discusses the recent decline in the stock market, particularly noting a 15% drop in the S&P 500, largely attributable to the Trump administration's tariff policies. Despite this, it suggests long-term buying opportunities in travel stocks, propelled by the rise of digital nomadsâ40 million worldwideâwho increase demand for airlines and accommodations. Frank Holmes from U.S. Global Investors highlights the airline industry's pricing power due to fewer competitors and evolving demand trends, asserting that the travel sector's dynamics are no longer purely cyclical.
There are not enough airports and airplanes to keep up with this new world that we're living in, so the airlines have pricing power.
The downturn could present long-term buying opportunities, and travel stocks may be some of the long-term winners.
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