Welcome to this week’s Total Wealth Insider!

Before I jump into this week’s webinar, I have an action for you to take on our special report position: Carnival (NYSE: CCL).

A few of the most populated states — California, Texas, Florida — are reporting record-high coronavirus cases. This is yet another blow to the cruise line industry, after an already devastating quarter.

This industry is in the worst type of waiting game. Every month they pay out cash to keep their ships in working order, while bringing in little to no revenue.

So, there’s an enormous built-in risk concerning how long cruise lines can stay open without going bankrupt, and if the threat of COVID-19 will ever lift enough to help a company avoid that fate.

I think it’s apparent that the virus threat is going to hang over the industry for far longer than many (including me) had initially anticipated. There are other places we can put our money in the meantime.

Action to take: Sell Carnival Corp. (NYSE: CCL) at the market.

We’re exiting with an unfortunate 64% loss, though it would be far worse had we sold at the April lows when the stock was lower by half than it is now.

Not everyone agrees with me on this point, but I think it’s important to note why it’s sometimes better to cut your losses and move on, rather than wait in a stock that just drifts along at lower levels.

When we invest, we’re not just investing our money in hopes of a good return — we’re also investing another limited resource: our time.

I’m convinced this stock will come back, eventually. If you’re in it and want to stay, I think you will be OK. Carnival also has plenty of liquidity now to ride out the virus situation.

But it will be September at the earliest, and realistically, probably next year, presuming there’s a vaccine by then, before any of the cruise lines really get going in earnest.

So that’s six months or more that we can use to redeploy our money elsewhere, for the opportunity to make back a portion of this loss.

A loss of 64% seems like a lot. And it is, especially if you invested everything you had in this one position.

But if you’ve spread out your bets across 10 or 15 companies as demonstrated in the portfolio, it doesn’t take much — a gain of 20% in one new position, a 25% gain in something else — to recover this loss, while other stocks in your portfolio hold their own or move higher.

Best of all, you’ve recovered your confidence. That’s probably our most powerful resource — the confidence to continue with our financial goals through a time of great volatility and know that we can take more than a few disappointments, and keep going.

As for today’s update, I discuss:

• A reader’s question on airline stocks. When will they come back?
• AeroVironment (Nasdaq: AVAV) hit its highest price in a year.
• Why now is a good time to buy into Clarivate (NYSE: CCC).

To watch this week’s 11-minute webinar, click on the image below.

(Click here to watch the webinar.)

Click here to read a transcript.

I’ll be back with you next week! In the meantime, check out our resources if you haven’t already. We have a wealth of great information online, including our trading manual, special reports, FAQ and more!

Best of Good Buys,

Jeff Yastine
Editor, Total Wealth Insider
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totalwealthinsider@banyanhill.com