As gas prices climb....about Cruise Lines?
There are thousands of impacts inflation has on consumers and businesses, but think of the Cruise Line Industry. You sold your product a year ago and priced it at $2.50/gal fuel and you start delivering next week.
As bookings increased coming out of the global economic turmoil so did the stock price. As fuel cost increased the stocks did a 180. I cannot imagine at these fuel prices: First the consumer and how it impacts their vacation budget and how that translates into bookings (decrease). Second fuel and food is going to decrease margins dramatically.
All in all, I was a bit surprised and comforted that the stocks have already priced in much of the inflation head winds.
As the globe moves into a inflationary period based on increased demand and decreasing supplies, investors will have to adjust how they analyze businesses. Yes, I grew up in the 70's when the LIFO/FIFO debate raged.
Welcome back Kotter!
As bookings increased coming out of the global economic turmoil so did the stock price. As fuel cost increased the stocks did a 180. I cannot imagine at these fuel prices: First the consumer and how it impacts their vacation budget and how that translates into bookings (decrease). Second fuel and food is going to decrease margins dramatically.
All in all, I was a bit surprised and comforted that the stocks have already priced in much of the inflation head winds.
As the globe moves into a inflationary period based on increased demand and decreasing supplies, investors will have to adjust how they analyze businesses. Yes, I grew up in the 70's when the LIFO/FIFO debate raged.
Welcome back Kotter!
Posted by Bradley Fluetsch at 4/27/2011 5:23 AM 
Categories: Economics
Tags: Cruise Carnival Royal Alaska gas fuel inflation retirement invest
Categories: Economics
Tags: Cruise Carnival Royal Alaska gas fuel inflation retirement invest
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