Many countries were beginning to loosen their border restrictions which would have resulted in an increase in business and personal travel thus benefiting Visa (V) and its competitors. Now, however, reports of the Omicron coronavirus variant have led to many countries closing their borders to international travel. While countries and territories are taking different approaches toward preventing the spread of this new variant, these new travel restrictions will undoubtedly put pressure on V and its competitors.
- the European Center for Disease and Control Prevention (ECDC) has stated the Omicron variant could be responsible for 'over half' of all coronavirus infections in wider Europe within the next few months;
- Germany announced a nationwide lockdown for the unvaccinated and mandatory vaccinations could take effect as early as February 2022. This vaccine mandate would follow in the footsteps of Austria which also plans to make inoculations for eligible adults compulsory starting in February;
- other European countries such as Belgium and the Netherlands are grappling with a surge in infections; and
- cases of the Omicron coronavirus variant have been identified in the United States and Canada.
Clearly, investors have good reasons to wonder if V is a good stock to buy.
In my recent Is Visa A Good Stock To Buy? guest post at Dividend Power, I share my thoughts on why I am adding to my V position.
I wish you much success on your journey to financial freedom!
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Disclosure: I am long V in an account held within the FFJ Portfolio.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.