As vaccinations increase and hospitalisations decrease, footfall at theme parks looks set to rise further. Walt Disney’s theme parks stand to gain from this return to normality as pent up savings can be used for recreation spending. However, one of the keys to this pattern holding will be the FOMC decision next week. If the Fed push back against the idea of fast tapering that should be supportive for stock buyers in the near term.
Over the last 10 years, Walt Disney shares have risen nine times between Sept 15 and Nov 13. The average gain has been 4.87% and the biggest fall was in 2012 with a -8.03% drop. The largest gain was in 2015 with an 11.03% rise.
Major Trade Risks:
If the Fed announce tapering next week then this will bring share prices lower as investors see higher interest rates coming.