LUV Stock – Economic Outlook: People Are Out and Ready to Spend
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I’ve seen a lot in my 20+ years of investing.
Bull markets. Bear markets. Countless corrections. Short attacks. Unexpected rallies. And even a handful of events that absolutely baffled me.
But if there’s one constant that’s stuck with me for all these years, it’s trusting my own eyes.
I always have my head on a swivel. I want to see what’s going on around me and in the world … and I want to know how I can make money from it.
Well, this past weekend told me a lot.
Something big is about to happen in the stock market ….
It all started on Thursday morning when I stopped at my local Dunkin’ Donuts for my large black coffee. I do this every day on the way to the office — can’t live without it. I typically order ahead via the mobile app so that when I walk in, the coffee is sitting there for me to grab and by on my way out.
Not that day, though.
For the first time in a year, the line was out the door … and my preorder took more than 10 minutes instead of the usual 10 seconds.
I certainly noticed the crowd after a year of very few people being there, but I didn’t think a whole lot more about it and went on with my day.
But then it happened again …
The very next morning I went to the office first before running over to a different Dunkin’ Donuts for my daily caffeine fix. And there it was again — a line out the door. I had ordered ahead as usual, but it took me about 10 minutes to get through the line.
On top of the long lines, several customers bought several dozen donuts. I know we are eating more during the pandemic. But this clearly wasn’t everyone being off their diets and stocking up on donuts. These had to be for groups of people — probably in an office.
And then Saturday blew my mind.
I visited a local shopping mall, which I never do, and it was jam packed. It looked like the week before Christmas. I had to circle the parking lot several times before finding a space. Once I walked into the mall, it was like I was back in time before COVID-19. People were everywhere. And most stores had a line to get in, as they still must limit the number of customers allowed inside.
Going one step further, nearly every person carried a bag. This wasn’t just a day at the mall to get out of the house …
People were spending money.
We can listen to economists, politicians, scientists, talking heads on TV, and everyone else and get varying opinions and forecasts. But my eyes have never lied to me, and after last week I can see very clearly that Americans are itching to get back to life.
I call it the Great Grand Reopening. It’s the mother lode of pent-up demand, as the entire country — and world — is bursting at the seams to get back to life.
As vaccines are distributed and the pandemic hopefully fades into the rearview mirror, this pent-up demand will be unleashed with hyper intensity. Trillions of dollars will flow into the economy.
So welcome to the Great Grand Reopening!
We still have a long way to go. But that is why the Great Grand Reopening is also a great opportunity.
The Transportation Security Administration reported that 1.357 million people went through security checkpoints last Friday, March 12. This was the most in one day since March 15, 2020.
Southwest Airlines (NYSE:LUV) announced on Monday that its March numbers will be better than expected thanks to higher demand – pent-up demand – from leisure passengers headed to beaches and nature-inspired destinations. The travel bug has definitely been eating at me recently… and clearly I’m not the only one.
In fact, Walt Disney World in Orlando has already sold out of all its tickets for next week. It is operating at reduced capacity, but that is expected to change in the coming months as the vaccine is more widely distributed. Disney World even plans to begin 50th-anniversary celebrations on October 1.
It’s been a tough and tragic year for many people around the world, and I am thankful that we live in a time when science broke every record in developing vaccines that allow us to see the light at the end of the tunnel. And to look forward to again seeing family and resuming many activities.
The demand to be normal again is there — regardless of the cost. So bring it on!
While the Great Grand Reopening isn’t a theme that will last for decades, it’s not one that will last just a few days or weeks either. We have several good years to take advantage of the impending economic boom … and several good years to make a lot of money.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.