Pinned straw:
Most have probably seen reports this week that tourism into the USA, including from Australia, has plummeted in recent months. This is having a significant impact on companies like Tourism Holdings as shown below. One wonders to what degree tourism in just the canary in the coalmine. I've been trying to reduce my exposure to consumer exposed brands selling into the US, particularly but not exclusively those with manufacturing in China. However, I am actively questioning whether my focus should be broader as it seems probable that the contagion is unlikely to stop at the consumer, nor just the US.
(the update below might seem slightly contradictory at first glance as it describes volume and margin decline in all countries as well as "some growth" in non-US markets - including the 51st state it is pleasing to see. thl both rents vans and then sells them off after a few years so they are speaking to the two business segments.)
[Not held]
A 40% tp 50% drop in activity from a 500m pop with disposable income must surely be a significant body blow to company trading. Dig a little deeper and one might find a massive cultural and historical trend afoot by European youth that not only impacts this year but well into the future. Once the Gold Coast was the only destination for Schoolies week…now it is splintered over various locations and overseas. It’s proving very difficult to win back.