Terrorists’ attacks influence travel companies shares

Last years were full of different terrible terrorist attacks, which killed hundreds of people on the streets of Europe. It doesn’t dramatically influence the level of tourists, who come here, but it still has a great impact on the prices of shares of travelling companies, who bring people to France, Germany, Belgium and other top-visited countries, which became the victims of terrorist attacks.

The best way to discover, what kind of results may occur, is to analyze the market after some of the attacks, which have already happened. For example, after the Paris attack, which happened on the 13th of November, the French stock market dropped over just 1% in its price. Actually, it climbed back after this. So, we can’t say that terrorists influence the whole market. Their impact can be better seen on the travel companies, which have already lost over 2 billion dollars in price through the whole Europe. This sum is amazing if we compare some of the actual losses of travel business companies. French hotels Accor S.A. shares lost almost 5% of their price, Air France shares dropped over 6%. These numbers are amazing, are they?

The specialist’s advice to those, who want to protect their investments, to pay attention to those companies, which are more protected from losses. First of all, they must belong to some strategical fields, like defence, oil and gas industry, banks and so on. Diversifying can bring its fruits, so think well how to split your investment portfolio.

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