Much of this dominating performance this year is due to the war in Ukraine, which has created a demand for commodities. Over the past five years, Saxo Markets’ equity-themed commodities basket delivered one of the most consistent returns.ĭuring this period it returned just over 120% of its value, and in the year to date it is the most profitable of Saxo Markets’ baskets, delivering just over a 15% return. “ An increase in fuel prices and environmental charges will likely hit budget airlines, such as EasyJet and Ryanair, harder than others with prices for ‘cheap holidays’ likely to increase to help balance costs and lower demand,” Raza explained. Over the same period, American airlines Delta and Southwest shared similar losses, close to 40%, and it could get worse for other budget air travel providers. Of the equities in this themed basket, On The Beach and TUI were two of the worst performing holiday booking companies, losing 62% and 73% of their respective values over the past five years. “ now face a different challenge in managing rising costs, with the potential of a recession at the end of the year set to have an impact on holiday bookings for 2023 as consumers begin to hold back on non-essential spending,” she said. As a result, this basket should mimic the movement of the travel industry, with all changes recorded by Bloomberg and the Saxo Group.Įven though the travel sector is showing signs of recovery from the COVID-19 pandemic, much of its underperformance is due to the pandemic, according to Anaam Raza, Head of Investment Platforms at Saxo Markets. In this example, Saxo Markets hold shares in both airline Ryanair and Tripadvisor, the online booking platform. This themed basket consists of 40 equities, or stocks, which contribute to the travel industry through different means. Saxo Markets’ equity-themed travel basket is the investment platform’s worst performing basket over the past five years, losing almost 8% since 2017. Holiday booking companies On The Beach and TUI are among the worst performing travel stocks this year.
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