The Stock Market Collapse and Travel
 

I have been following the recent events on the stock market and those newspaper articles describing the effect of the collapse on the portfolios of the middle class. <BR><BR>Here is my guess. Things are not going to improve on the market for another 3 years. The worst is yet to come.<BR><BR>People are going to tighten up on their spending and what they buy will have to be a bargain. Expensive resorts that thrive on the extraction of American Greenbacks to fuel their economy such as Cancun(note everything in American Prices} are going to suffer a decline in tourism for the next 3-5 years and what will sell are those resorts offering discounts and value for dollar.

Your view might be true overall, but certainly not for me. I never stay in resorts anyway, just middle class Mexican hotels, so am never looking for packages or "discounts" and already have found "value for dollar". What my small holding in the stock market is or isn't doing will not effect my travel plans. I vacation off my paycheck not my investments.

The market was due for a correction anyway. Stocks with true underlying value will stablize. The world isn't going to regain its trust in US markets quickly if Bush, Cheney and Co. insist on continuing their present antics, but there are certainly other markets besides the US. With the Euro rising and the tumultuous state of the US government, even savvy US'ers should be contemplating offshore investments anyway.

For what its worth I am working on arranging a trip to Costa Rica in mid-February and rooms are already tight at the better places. <BR><BR>My opinion is that people will take shorter vacations and more importantly will look at "safer" and closer (to the USA) locations like Mexico, Costa Rica, etc. instead of more exotic locales like Asia/Middle East/Africa/India and the like. All of this may in fact work to drive up rates in the "safer" locations as demand increases and starts to outstrip supply especially for holiday periods like Xmas/Easter, etc.

Speak for yourself Jackson. We are going to Egypt in October and to South Africa in March 2003. We are from the US

MM, I ALWAYS speak for myself. Good luck on your trips. Watch your back. Hope your insurance is all paid up!! ;-)

You are coward Jackson<BR>Don't tell other people what to do and how to feel

in the late 90's I was called un-american and an idiot becouse I was telling people the stock market was overvalued and companies were cookding the books (I am contrerion at heart) i was ultra short naxdaq and long gold for years...with some long hedges... what does this mean NOTHING.. becouse I'm play with petty cash. and my travel cash basically stayes in my saving account.. <BR><BR>1.I don't think the market had that much of an affect on travel industry as did the twin towars thang..Americans are scared of travaling as it is...the most exotic place most will go too is a ritz Carlton in Mexico. now they/we are afraid too leave the driveway..<BR><BR>2. wages have basically stayed the same (that is if you have your job) so most have the same money comming in and are not playing the market.. they could eaaelly choose too go visit Caracas, Hong Kong, or the worlds biggest cheese wheel. but they choose too use the money for other things. (not travel)<BR><BR>

I basicly agree with Jorge, my money is in CDs. I know...everyone thought I was crazy but now I'm laughing all the way to the bank! I have continued to travel outside the country approx. every quarter. No fear here...I live in one of the most unsafe countries in the world, the USA, anyway.