Do you think this Memorial Day weekend will be similar to last year’s? Although gas and oil prices are somewhat more reasonable this year, many are wondering if gas prices are still high enough to keep exchange traded funds (ETFs) moving while consumers stay put.
Perhaps, according to AAA, who are anticipating that 32.4 million Americans will travel at least 50 miles from home over the Memorial Day holiday, an uptick of 1.5 % over last year’s 31.9 million travelers. Although there are travel bargains and lower gas prices than last year, many say that economics have nothing to do with it.
The very slight uptick still remains a sign that Americans continue to view their holiday/vacation times as a necessity, not a luxury. The weather was so extraordinarily perfect last Memorial Day weekend that throngs of spontaneous travelers took to the roads, bumping up the travel numbers, reports Linda Lloyd for Philly.com. This year the weather is forecast to be scattered.
This weekend, the “road trip” is the word, with gas at $2.33, 39% lower than in 2008. And the numerous discounts at hotels and attractions are enticing. Allison Abell Schwartz for Bloomberg says that Memorial Day, which commemorates U.S. armed forces killed in service, falls on May 25 this year and marks the traditional beginning of the summer travel season.
ETFs that may benefit from driving season:
- United States Gasoline (UGA): up 55% year-to-date
- Unites States Oil (USO): up 0.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.