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People might well put their money into stocks if the proposed negative rates become reality, but surely not by investing into companies that will be adversely affected by such rates? At least not until the SP of those companies reflect the impact negative rates will have on their earnings for the years ahead.
Anyone holding should consider bailing out whilst you have the chance. If you think the SP is cheap now, just wait until negative interest rates are imposed, which is almost certain to happen and will remain for the foreseeable future, then you can expect to see the SP hit new historic lows.
To those of you who have not yet worked out what is pushing the SP down, not just Aviva but across the entire financial sector, read this...
https://www.ft.com/content/319b2a3a-9a98-11ea-8b5b-63f7c5c86bef
I too think it will tank tomorrow, probably be down by 10% and then continue a downward spiral over the coming months.
Some people think the SP will not be adversely affected come tomorrow as a result of yesterday’s news story reporting the sell off by Buffet, because it already happened about a month ago and so already priced in, but this was not common knowledge at the time and its only been made public now. The accompanying commentary by Warren Buffet on the airline industry will also do no favours for the SP tomorrow, IMO.
The beginning of the demise of Branson’s business empire with Virgin Australia to be the first to fall…
https://www.bbc.co.uk/news/business-52354865
Do people remember when BA was on its knees about 10 years ago, this is what Branson had to say about that at the time…
https://www.theguardian.com/business/2009/jun/22/richard-branson-attacks-british-airways
Amusing how the tables have turned on this hypocrite! :)
The comments made by 'Longtermview24' are rational and I concur with their view that this will head south again soon, only this time it will be free fall into the abyss!
Don't get blindsided by the recent investment from the Saudi's, whilst it has for now brought with it some confidence and a price spike, this will falter as the weeks pass by when Carnival's predicament becomes more apparent which not even Saudi's intervention will allay. Also, let’s not forget the fact the Saudi's have a long history of unwise investments (they can afford to take the risks on the chin), such large liquidity injection is usually a godsend for a company and its shareholders but when it’s Saudi money it appears to be more of a curse.
It would be naive for anyone to assume that when governments around the world ease restrictions that this will automatically mean business as usual again for everyone. I think much of the travel industry will continue to be adversely affected for a very long time, perhaps until there is a vaccination available and in the meantime most countries will at the least impose a 14 day quarantine period on all arrivals and at their own expense which will discourage a lot of people from traveling.
Carnival is haemorrhaging money at a rate that will only keep them afloat for the next 6 to 7 months at best, so unless by some miracle their ships set sail before then at a capacity which makes operations commercially viable, come November their existence will be no more, and if you haven’t already, time to abandon ship I’d say!