How Suez Canal Unblocking Could Reverse Your Stonks - MalkamDior.com
What stonks are being affected by the Suez Canal unblockage?
Wanted to get into a stock or two that have good fundamentals but this blockage has caused the price to drop and thus looking for "discount" prices.There have been countervailing factors that have created volatile moves in both directions, and that seems to have market participants feeling a little uncertain about how best to position their investments.
As of 11:15 a.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 132 points to 32,751. The S&P500 (SNPINDEX:^GSPC) gained 15 points to 3,924, while the Nasdaq Composite (NASDAQINDEX:^IXIC) picked up just eight points to 12,986.
One news event that's getting a lot of attention around the world is the current blockage of the Suez Canal in Egypt. A cargo ship got stuck in the canal, and that's created a logjam of shipping traffic. The canal is the only alternative to sending vessels all the way around the southern tip of Africa in order to get between the Indian and Atlantic Oceans, and connects markets in Europe with those in Asia. Therefore, many worry about the potential impact on global trade.
The salvage of this ship is going to be a monumental feat of engineering. You think it's going to take a week to get the equipment out there that they need? Right now they have like a few excavators and tug boats and they haven't even moved it a millimeter yet.
Some believe that the Suez Canal could get unblocked as soon as this weekend. If that happens, then the momentary spike in shipping stocks could abruptly reverse itself.
In the longer run, what's important is whether demand for the energy products that tanker companies ship will remain high. As long as the world emerges from the COVID-19 pandemic in short order, the odds of that demand coming back look good.