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Bear vs Bull Stock Market 

What is a bull and bear market? 

A bull or bullish market occurs when stock prices  are generally rising or are expected to rise. It is often  characterized by optimism among market participants,  high levels of investor confidence, and expectations that  strong results should continue for an extended period. It  is often supported by a positive economic performance  and outlook, which fuels investor demand for assets such  as stocks. A market is usually not considered a true bull  market unless it has risen 20% or more from its most  recent low. Prior to the pandemic the Jamaican stock  market was bullish.  

However, since then, the economic effects of the  pandemic, followed by the elevated inflation and interest  rate environment have caused the market to turn bearish.  A bear market is the opposite of a bull market. During bear  markets, stock prices can fall and remain depressed for  prolonged periods amid negative investor sentiments and  pessimism. A market is usually not considered a true bear  market unless it has declined 20% or more from its most  recent high. The most recent bearish market started on  March 10 and is currently ongoing. 

Tourism Boom Driving Financial Rebound in  Dependent Companies 

Following the steep decline during the pandemic, the  tourism sector has seen a sharp rebound, and the near  to medium-term outlook for the sector is positive. Locally  tourism has grown for the past 9 consecutive quarters by  an average of 87.3%. The desire of consumers to travel  after almost 2 years of home confinement because of the  pandemic has helped to fuel the demand. More flexible  work schedules thanks to remote and hybrid work models  coming out of the pandemic are also fuelling the possibility  of and demand for year-round travel. The sector has also  been witnessing historic summer tourism performance,  influenced by the aforementioned, as well as the ability to  enjoy the region without the luxury price tag, as plane and  hotel costs are cheaper during the summer months. Due  to these factors, as well as the strong labour markets in  source countries such as the US, UK, and Canada, hotel  expansions, and increased airlifts, Jamaica is expected to  see a return of stopover arrivals to pre-pandemic levels by  the end of this fiscal year, with overall earnings forecasted  to increase by 10.8% year over year to US$4.1Bn. 

Given the strong rebound and favourable outlook for the  sector, tourism-reliant companies such as Caribbean  Producers of Jamaica, Express Catering Limited, and  Knutsford Express, are recording recovery in earnings and/ or making investments to benefit from the positive outlook  for the sector. 

Buying a stock is easy, but buying the right stock without  doing your homework can cost you. So, we have done the  research for you. Here are the best stock picks from the  Tourism Sector: 

Contact ncbcminvest@jncb.com or your wealth advisor  for further assistance and in depth analyses on these  companies, including performance, return potential and  potential risks.

NCBCM’s Wealth Connect mobile app is the route to true wealth. 

Whether you’re on-the-go, at home, or overseas, you can  manage your stocks efficiently, with the ease and peace of  mind in your privacy and confidentiality through the Wealth  Connect mobile app’s equity feature: 

Disclaimer: Investing involves risk. Prospective  Investors should carefully consider investment  objectives and consult with professional advisors before  making any investment decision.