Travel leisure resilient on consumer strength
The guest argued that the US consumer continues to defy gravity, making travel and leisure stocks like Marriott and Marriott Vacations attractive plays.
The argument
The guest pointed to strong discretionary spend on travel, noting Marriott's strategic positioning with properties near World Cup venues and Marriott Vacations as a play on timeshare rentals.
The thesis, stress-tested
✓ What validates it
- ✓Strong occupancy rates and RevPAR during the summer travel season
- ✓Robust timeshare rental revenues for Marriott Vacations
▸ Risks discussed
- ▸Rising gasoline prices squeezing discretionary budgets
- ▸Broader macroeconomic slowdown impacting travel demand
Hear it yourself
"So to the extent that they can't keep up with expectations, to the extent there is a disappointing, you know, quarter or series of quarters where CapEx estimates for some reason have to come down and earnings estimates, you know, get revised get revised lower, of course, you always run the risk. But that's why we make the case for diversification within the equity market because you've been able to you know, that's that's been the best way to play this, especially with even a sector like health care over the past couple of weeks. On the road. And with the new Schwab commitment to wealth advisers and and all that, huge announcements from Schwab over the last ten days on this."
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