Castro Out, CUBA Makes Big Gain
Fidel Castro has formally given up power in Cuba after over 50 years of rule. What this change means for the Cuban economy is unknown, but likely changes will occur, and reforms to bring the isolated island into the mainstream of the world’s countries will probably be undertaken in the upcoming years.
On Wall Street, investors were quick to find stocks that would be affected the news. CUBA is a closed end fund that invests in many Caribbean countries and stocks, and has major holdings in cruise lines and other tourist related industries. The fund had lost roughly 50% over the last six months, but on the news of Castro’s stepping down was up 20% in daily trading.
TheStreet.com was quick with a video suggesting some other investment opportunities, such as Mexican cellular company America Movil (AMX) and cruise line Carnival (CCL). Obviously, major changes in Cuba probably won’t be enacted overnight, but watching America’s southern neighbor over the next few years for investment opportunities should pay off in the long run.
