With the Coronavirus spreading around the world, the major US and world markets have moved lower in a big way. I recently noted why these moves lowered occurred. While I don't believe at this time, we have enough information to accurately determine if this new virus is going to be a Black Swan and crash the world economies. I do believe we should all start thinking about what we are going to do if the situation does get worse.
With that in mind, let's take a look at a few industries and ETFs that you may want to avoid investing in if the Coronavirus situation does continue to get worse.
The travel industry would be high on my list of businesses to avoid right now. The US airlines have already stopped flying to China and have announced plans to cut flights to other profoundly affected countries around the world. Hotels also are seeing lower fewer guests as tourism and business travel have rapidly declined as travel restrictions have been put in place by both governments and corporations. Think Marriott, Southwest Airlines, Delta, even Boeing.
And of course, we shouldn't forget about the gaming and casino industry. While these stocks could be lumped in with the Hotels, most people consider this industry to be separate from the rest of the leisure industry. Think MGM Resorts, Wynn Resorts, and Las Vegas Sands.
The next types of business we should be looking at are those that operate in very public events. Continue reading "5 ETFs To Avoid Because Of The Coronavirus"