Quantum Wealth Summary
- When the Covid pandemic first hit us in 2020, some analysts believed that global tourism would be crippled. It would take years to recover.
- Now, in 2023, the borders are open. The fear is fading away. Tourism is bouncing back.
- One Company in this sector has experienced a 100% surge in stock price in just six months. This makes it the best performer in its category. What’s driving this positive momentum? Is there more upside to come?
- Plus, wise investors understand that building a healthy and balanced portfolio has never been more important. We are now looking at several exciting stocks that could prosper when the next bull run begins. You’ll find this covered in our Weekly Top 5 Quantum Trends.
Do you believe in the Kiwi dream?
What does it mean to you?
Well, traditionally, the Kiwi dream has been used as a catch-all phrase. An inclusive idea. It sums up three things that are desirable about New Zealand life — owning your own home, having a stable job, raising a family.
Source: Verywell Mind
Of course, the Kiwi dream is not static. Over time, it has progressed. It has evolved. These days, you could argue that there’s now a fourth critical element to the dream:
- It’s about being financially independent enough to be mobile. To travel. To criss-cross borders at will.
- Indeed, I have observed that becoming an ‘eternal tourist’ appears to be a common ambition for most New Zealanders today. This covers the entire spectrum of our society — baby boomers, Generation X, millennials, Generation Z. And, yes, it’s safe to say that Generation Alpha will inherit this goal as well.
- Of course, what we’re seeing isn’t just a Kiwi trend. It’s part of a global phenomenon. People are now more aspirational than ever before. They have high expectations when it comes to their quality of life — and increasingly, they’re treating travel as not just a privilege but a right.
So, how did we get to this point? What changed? Well, my own family’s journey across the past century offers some clues:
- It’s a matter of wealth. In just four generations, my family has gone from being peasants to refugees; from working class to middle class.
- It’s also a matter of life expectancy. As recently as the 1950s — when my parents were born in rural Malaysia — it was still considered a rare event for anyone to live to the age of 50.
- In fact, according to local tradition back then, once you reached 50, your loved ones would celebrate a ‘second birthday’ with you.
How stark. How sobering.
So, if I can borrow a phrase from Thomas Hobbes, here’s the astonishing truth: until the second half of the 20th century, life really was nasty, brutish, and short.
These days, by comparison, life has evolved to something approaching sunshine and rainbows.
It’s extraordinary how far we have come as a species.
Source: Our World in Data
Given this leap forward, it’s no wonder that people are feeling that unquenchable desire to savour life. This is happening for the simple reason that there’s a lot more life to savour.
So…why not become eternal tourists?
Well, why not, indeed?
This is why I’ve been watching these recent developments with a great deal of interest:
- In 2019, the global tourism market was worth roughly $1.8 trillion.
- In 2020, along came Covid in 2020, smashing that figure down to just over $1 trillion.
- Roughly $800 billion was lost. No great surprise there. We faced travel restrictions. Quarantine requirements. Tourist numbers plummeted.
- The economic impact on everything was severe. Hotels. Restaurants. Tour guides. Souvenir shops. You name it. The fallout was catastrophic.
- The pessimists feared that tourism might never recover from this blow — which is a similar sentiment to what we saw in the wake of 9/11.
- However, this fear has proven unfounded. As travel restrictions ease up and the borders reopen again, we have seen an upward swing in pent-up demand. The final figures for 2022 are not available yet, but it is estimated that the tourism market has bounced back to $1.6 trillion.
Well, it does appear that people worldwide are clamouring to travel. They feel cheated by Covid — and they clearly want to make up for lost time.
Because of this, one stock in the tourism sector has surged by over 30% in January. In fact, this Company has actually been climbing since July 2022, experiencing an upward lift of over 100% overall.
- Despite the talk of a recession of 2023, there’s a sense of buoyancy and optimism now. The fear appears to be mostly priced in.
- The bulls seem to have the momentum as they charge forward, while the bears are fading away into hibernation.
- This stock is the best performer in its category. So, is there still room for it to run? What is the upside here? What are the prospects for tourism in 2023?
This is the trillion-dollar wealth trend you need to understand right now…