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Six Oil Stocks to Buy as the Economy Improves and Energy Prices Rise

Six oil investments to buy as the economy improves and energy prices rise are part of an industry that recently led BoA Global Research to forecast Brent crude soaring to $100 a barrel by 2022. The six oil stocks to buy amid the recovering economy and…



Six oil investments to buy as the economy improves and energy prices rise are part of an industry that recently led BoA Global Research to forecast Brent crude soaring to $100 a barrel by 2022.

The six oil stocks to buy amid the recovering economy and increasing oil prices include the country’s biggest refiner of the so-called “black gold” and five stocks given buy ratings from BoA. The forecast of $100 a barrel for Brent crude next year came from BoA’s commodity team, but the company’s equity research staff is not quite as bullish.

Fund-Loving Pension Chairman Predicts Oil Rising to $100 a Barrel Amid Economic Recovery

Aside from short-term pullbacks, oil has been a good investment for more than a year, and that’s likely to continue, said Bob Carlson, who heads the Retirement Watch investment newsletter. Market forces and the major oil producers are likely to drive the price of oil to around $100 and it likely will stay around that level, if global economic growth remains strong, he added.

“I prefer to invest in the commodities themselves instead of companies in commodity businesses,” said Carlson, who also serves as chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets. “Investing in the commodities avoids potential problems with management, debt levels, regulators, labor and more.”

Funds are the best way for most investors to take positions in commodities, Carlson counseled.

Pension fund and Retirement Watch chief Bob Carlson answers questions from columnist Paul Dykewicz.

Commodity Fund Offers Alternative to Six Oil Stocks to Buy

One good choice is the ETF iShares GSCI Commodity Dynamic Roll (COMT), Carlson continued. The fund seeks to follow the Goldman Sachs Commodity Index, which is more heavily weighted to energy than most other commodity indexes, he added.

Chart courtesy of

COMT invests in most commodities using futures contracts. The fund has gained 9.30% in the last three months and 28.27% for the year to date.

“Another good choice is Parametric Commodity Strategy (EAPCX), an open-end mutual fund,” Carlson said. “This fund also takes most of its commodity positions through futures contracts. The fund’s benchmark is the Bloomberg Commodity Total Return Index, which isn’t as heavily weighted in energy as the GSCI.”

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However, EAPCX does not try to track the Bloomberg Commodity Total Return Index, Carlson commented. Instead, EAPCX seeks to beat the index using a rules-based systematic investment process, greater diversification and more active rebalancing, he added.

“The managers don’t forecast the markets or take positions based on forecasts,” Carlson said.

The fund rose 8.94% in the last three months and 21.60% for the year date.

Wall Street Veteran Chooses Largest U.S. Oil Refiner as One of Six Oil Stocks to Buy

“Oil prices topped out in mid-July after OPEC stated it would increase production,” said Bryan Perry, who heads the Cash Machine investment newsletter, as well as the Premium Income, Quick Income Trader, Breakout Profits Trader and Hi-Tech Trader advisory services. As of July 19, WTI crude traded at $66.57/bbl. in what is the sharpest sell-off since late March. Assuming this pullback in crude is an orderly correction, following a torrid move higher year to date, it presents a compelling buying opportunity in some blue-chip energy stocks.”

Paul Dykewicz interviews Bryan Perry at a MoneyShow.

One such stock to consider is Marathon Petroleum Corp. (NYSE:MPC), America’s largest oil refiner, said Perry, who called it his favorite industry pick at the moment. Findlay, Ohio-based Marathon Petroleum Corp. not only has robust operations in refining but in midstream and retail markets, he added.

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Refiner’s Resurgence Rates It One of Six Oil Stocks to Buy

Revenues at the company are forecast to jump by 23% to $85 billion in 2021 with earnings of $1.03 per share estimated to soar by 221% to $3.31 in 2022, Perry said. The stock traded at $64.84 in early June and is testing its 200-day moving average around $50, sporting a dividend yield of 4.5%, Perry continued.

If oil prices stabilize, Marathon Petroleum should prove to be a “very savvy purchase” for investors seeking to initiate or add to their energy holdings,” Perry predicted.  

Six Oil Stocks to Buy Gain Economic Support from Stock-Picking Professor

The 13-nation Organization of Petroleum Exporting Countries (OPEC) and its oil-producing allies recently agreed to provide millions of additional barrels of crude oil a day to the global market in the next two years, said Mark Skousen, PhD, who heads the Forecasts & Strategies investment newsletter, as well as the Home Run Trader, Five Star Trader, TNT Trader and the Fast Money Alert trading services. So, it is no surprise that the price of U.S. oil has dropped by 6% to less than $70 on Monday, July 19, added Skousen, a Presidential Fellow in economics at Chapman University.

The drop in oil prices hurt energy producers as the sector was enduring a shakeout due to the recent consolidation in the stock market. But a good contrarian buys on bad news with a view to taking profits when the outlook improves, Skousen counseled.

With the pandemic receding, interest rates near record lows and governments introducing multi-trillion fiscal stimulus around the world, it should not be long before oil prices and companies rebound, Skousen opined.

Mark Skousen, PhD, a descendent of Benjamin Franklin, meets with Paul Dykewicz in Philadelphia.

Money Manager Suggests a Fund and a Natural Gas Company Other than Six Oil Stocks to Buy

“I’m going to get contrarian here: while oil might spike above $100 on a supply shock or geopolitical tension, it’s going to take a lot of inflation and a lot of OPEC supply discipline to keep it there,” said Hilary Kramer, who heads the GameChangers and Value Authority advisory services. “This is not the 1970s, when U.S. energy independence was a cruel dream. If overseas producers talk tough, domestic shale operators will simply drill more wells. So, what do I like in the sector? All the majors are down 10-25%, so all you really need to do is pick up a broad market-cap-weighted basket like the Energy SPDR (NYSE:XLE) and wait for rising crude to lift all the boats.” 

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If investors want something more concentrated, here’s an outside-the-box idea: natural gas processor Williams Companies (NYSE:WMB), which at an implied yield of 6.4% is showing significant stress, Kramer counseled. 

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“I’d be surprised if cash flow on the horizon will support the dividend, so the market is right in being a little leery of this stock, Kramer said. “But while it will take some creative accounting to maintain a $0.41 quarterly payout, I’m thinking WMB can manage $0.30 per quarter without too much trouble… if management decides they need to cut at all. That’s worth a 4.5% yield, which is pretty good if you’re simply looking for a bond replacement over the next few years.”

Columnist Paul Dykewicz interviews money manager Hilary Kramer, whose premium advisory services include IPO Edge2-Day TraderTurbo Trader and Inner Circle.

And that possibility is a “worst-case scenario,” Kramer said. WMB’s management found a way to keep raising the dividend in every oil slump since 2002 and only cut in 2016 to free up cash for acquisitions, she added.

“At the time, Wall Street cheered,” Kramer recalled. “While I can’t promise that this time around, using this stock for income and not as a trading vehicle is probably the way to go right now.”

BoA Global Research Identifies Five of Six Oil Investments to Buy 

A recent research report by BoA identified five oil stocks as buys. Exxon Mobil Corp. stands out at the top of the group.

Key risks faced by Exxon Mobil include a challenging margin environment, significant delays to the new upstream projects critical to its growth targets and obstacles to capturing the price climate due to cost constraints. However, BoA set a lofty $90 price target for Exxon Mobil, 60.8% above its closing price of $55.96 on July 20.

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Occidental Petroleum Corp. (NYSE:OXY) received a $44 price target from BoA that would mark a 73.4% jump from the company’s closing price of $25.37 on July 20. But the company’s downside risks, cited by BoA, include the tough oil and gas environment, potential delays in large-scale projects and exposure to the Middle East and the corresponding political risk it entails.

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Hess Earns Spot Among Six Oil Stocks to Buy

Hess Corp. (NYSE:HES) earned a price objective of $115 from BoA, along with a caution to expect the company to show restraint on new spending projects aimed at growing the business. The risks to the forecast include the unpredictable pricing environment, possible slowdowns in drilling that could cause production to slip below expectations and exploratory drilling activities that could hold back the stock’s rise, BoA indicated.

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FANG Earns Berth Among Six Oil Stocks to Buy

Diamondback Energy Inc. (NYSE:FANG) garnered a $114 price objective from BoA. However, it faces risks that include the uncertain pricing environment in the oil industry and the possibility of a slower rate of development than currently expected.

Deven Energy Also Is One of the Six Oil Stocks to Buy

Deven Energy Corp. (NYSE:DYN) received a $40 price objective from BoA, 57.9% above the stock’s closing share price of $24.54 on July 20. Challenges include trying to develop production in the Permian Basin and Eagle Ford shale, weak natural gas pricing and a potential global recession, according to BoA.

New Delta Variant of COVID-19 Spread May Affect Six Oil Stocks to Buy

The increasingly transmissible Delta variant of COVID-19 has raised concerns from health experts about increased spread of the virus across the United States. The variant is blamed for new surges in case numbers and deaths. Genetic variants of SARS-CoV-2 have been emerging and circulating around the world throughout the COVID-19 pandemic, according to the Centers for Disease Control and Prevention (CDC). 

For example, the CDC and the U.S. State Department each raised their warnings to the highest levels on July 19 for travel to the United Kingdom. The CDC cautioned to “avoid” traveling there, while the State Department issued a blunt “do not travel” warning for the United Kingdom.

A variant has one or more mutations that differentiate it from other COVID-19 varieties in circulation. The Delta variant is expected to become the dominant coronavirus strain in the United States, according to the CDC. With more than half the U.S. population not fully vaccinated, public health officials caution that a resurgence of COVID-19 cases may well occur this fall when many unvaccinated children return to school.

Progress in increasing the number of people vaccinated from COVID-19 lifts hope that new cases and deaths will keep falling. As of July 19, 186,317,651 people, or 56.1% of the U.S. population, have received at least one dose of a COVID-19 vaccine. The fully vaccinated total 161,473,715 people, or 48.6%, of the U.S. population, according to the CDC.

The Food and Drug Administration recently approved a third COVID-19 vaccine, manufactured by Johnson & Johnson (NYSE:JNJ), which requires only one dose rather than two, as with the first two vaccine providers: Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA).

COVID-19 cases worldwide have reached 191,216,295 and caused 4,101,590 deaths, as of July 20, according to Johns Hopkins University. U.S. COVID-19 cases reached 34,150,195 and caused 609,377 deaths. America has the dreaded distinction as the country with the most COVID-19 cases and deaths.

The six oil investments allow investors to profit amid the pandemic. Rising COVID-19 vaccine availability, improving economic data and a recent $1.9 trillion federal stimulus package should help to lift the prices of the oil investments to buy.

Paul Dykewicz,, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of and, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing!


The post Six Oil Stocks to Buy as the Economy Improves and Energy Prices Rise appeared first on Stock Investor.

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Weekly investment update – Emerging markets miss out on equities and bonds surge

At first sight, the direction of financial markets in July might have come as a surprise: global equities posted their sixth consecutive monthly gain despite a steep drop in emerging market equities, while bond markets also recorded strong advances, again



At first sight, the direction of financial markets in July might have come as a surprise: global equities posted their sixth consecutive monthly gain despite a steep drop in emerging market equities, while bond markets also recorded strong advances, again except for those in emerging markets.

Volatility spiked at times during July. Indeed, it hit its highest since early May and took equities from a historical peak to the lowest level in a month within the space of a week before they set another high towards month-end. Emerging market equities suffered from a persistent sell-off in Chinese stocks over the government’s regulatory clampdown on sectors ranging from ride hailing to gaming.

Economic growth – On an even keel  

While markets worried that the economic recovery had peaked, the latest purchasing managers’ data – seen as a leading indicator of the direction of growth – did not signal a sharp slowdown. China’s PMI for July, typically also a proxy for wider emerging market growth, fell by 0.5 of a percentage point from the previous month, indicating that company activity had slowed down. Remaining at above 50, the indicator also signalled that overall economic expansion overall is continuing.

In the eurozone, business activity rose at its fastest rate in just over 15 years in July. At 59.8 in July, after 58.3 in June, the services sector PMI was at its highest since June 2006 and consistent with a sharp rate of activity growth.

US GDP growth was 6.5% annualised in Q2 after 6.3% in Q1 and fell short of expectations. While inventories and net exports contracted, personal spending on consumption and non-residential private investment grew strongly. GDP was above its pre-Covid peak. Thanks to massive fiscal and monetary stimulus, it is now back on its pre-Covid trend.

Despite this economic progress, the US Federal Reserve has continued to indicate that there is still ‘some ground to cover’ before it will start reducing its pandemic support for the economy. Employment is still some seven million jobs below pre-Covid levels. Risks to the outlook remain, not least as Delta variant Covid cases rise.

Equities: Record-setting

July saw concern over slowing global growth offset by news of strong corporate earnings and still record-low interest rates. Markets were buoyed by optimism over the outlook for the US economy in the second half of 2021, even in the face of a pickup in Covid infections due to the more contagious Delta variant.

Some observers are pointing to the small chance of widespread lockdowns, while others have noted that although caseloads are rising rapidly, hospitalisations and fatalities are not.

US stocks recorded their sixth monthly rise in a row. The S&P 500 rose by more than 2%, while the tech-heavy NASDAQ and the Dow Jones added more than 1%.

There were all-time highs for European stocks as well, allowing them to record a sixth consecutive month of gains. Mid-caps, IT and dividend stocks led the market, while the energy sector lagged.

Asia takes a dip

In contrast, Asian equity indices had a poor month due to rising Covid cases across the region and concerns that a regulatory crackdown on tech businesses in China could slow already decelerating growth. This came on top of spreading Delta cases in the country and a softening land and property market. The developments clouded market sentiment across various regions.

Japanese equities lost more than 2% on concerns about another coronavirus wave and its impact on the economic recovery. Investor worries over global economic growth not only drove down US Treasury yields, but also the US dollar, allowing the yen to strengthen. The break in what had been the yen’s weakening trend also roiled Japanese markets.

Tepid domestic data, concerns about growth in China and volatile oil prices – Japan imports some three quarters of its oil consumption – also weighed on the market.

We believe there are reasons to be somewhat cautious on equities despite the good recent earnings momentum and the continued support from central bank pandemic measures. Recent recoveries followed sell-offs on a modest scale rather than sharp retrenchments and dips have not attracted many more new buyers or more widespread buying. Recent gains look vulnerable to us.

Bonds: The rally rolls on

Yields fell as investors sought shelter in haven assets such as US Treasuries and Bunds, extending the rally by a third month.

In the US market Treasury, 2- and 10-year yields notched their biggest one-month drops in over a year (March 2020), even as the Federal Reserve’s preferred inflation gauge rose sharply in June for the fourth big gain in a row. However, June’s increase was smaller than forecasters had expected.

Investors still appear to be siding with the Fed, accepting its view that higher inflation is due to supply bottlenecks and shortages and that these should ease off as the recovery matures. Ironically, the pressure should also ease as a growth slowdown tamps demand.

Over the month, long-dated debt yields fell to around five-month lows.

What’s up with real yields?

Some investors appear to worry that very low real yields — which measure the returns investors can expect once inflation is taken into account — are warning of a (coming) sharp slowdown in growth as the more contagious Delta variant spreads, turning businesses and consumers cautious again.

Others have argued that market pricing has become too pessimistic, pointing to the US economy’s strong rebound, even if growth has now peaked.

A further explanation could be that continued large-scale bond buying by central banks is still holding down yields across the board – even yields that are adjusted for inflation that has seen high readings in the US, the UK and Europe. An end to this form of support for economies does not appear to be in sight any time soon.

The Fed, which has bought about USD 120 billion of bonds monthly throughout the pandemic to pin down borrowing costs for households and businesses, reiterated after its latest policy meeting that the economy was making ‘progress’, but it remained too early to tighten monetary policy. Any tapering of bond purchases could be delayed by a growth slowdown, which should support markets.

Elsewhere in bond markets, high-yield credit in USD, EUR and GBP had another good month, extending their run of gains by a seventh month. UK inflation-linked bonds were in the lead in the fixed income segment.   

Gold was supported by the continued rise in inflation and the declines in real yields that have made it more attractive as an inflation hedge. Commodities more broadly were the best-performing asset class in July.

10-year yields   Monthly change 2021
US T-note 1.22 -25 31
JGB 0.02 -4 0
OAT -0.11 -23 23
Bund -0.46 -25 11
Euro Stoxx 50 4089.3 0.6% 15.1%
Stoxx Europe 50 3555.8 1.2% 14.4%
Dow Jones 30 34935.5 1.3% 14.1%
Nasdaq 14672.7 1.2% 13.8%
S&P 500 4395.3 2.3% 17.0%
Topix 1901.08 -2.2% 5.3%
MSCI all countries (*) 724.2 0.6% 12.1%
MSCI Emerging (*) 1277.8 -7.0% -1.0%
(*) in USD      

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Writen by Nathalie Benatia. The post Weekly investment update – Emerging markets miss out on equities and bonds surge appeared first on Investors' Corner - The official blog of BNP Paribas Asset Management, the sustainable investor for a changing world.

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Montreal real estate market: Sales return to pre-pandemic levels in July and price increases slow down

  L’ÎLE-DES-SŒURS – The Quebec Professional Association of Real Estate Brokers (QPAREB) has just released its residential real estate market statistics for the Montreal Census Metropolitan Area (CMA) for the month of July, based on the real estate…





L’ÎLE-DES-SŒURS – The Quebec Professional Association of Real Estate Brokers (QPAREB) has just released its residential real estate market statistics for the Montreal Census Metropolitan Area (CMA) for the month of July, based on the real estate brokers’ Centris provincial database.

“The month of July has confirmed a substantial decrease in sales that began in May, thus returning to its pre-pandemic level for the summer period. You may remember that in July of last year, we saw spectacular sales levels that went beyond the simple postponement of transactions that could not be concluded in the spring,” said Charles Brant, director of the QPAREB’s Market Analysis Department. “While this slowdown is partly due to a drop in active listings of single-family homes to historically low levels, it can also be explained by the shrinking pool of buyers who can afford a property at current market prices. However, we have indeed seen a slowdown in price increases and a levelling off of price changes since the spring, for all property categories combined,” he added.

July highlights

  • The real estate brokers’ Centris system recorded 3,799 sales transactions in the Montreal CMA in July. This represents a 29 per cent decrease in sales compared to the peak recorded in July of last year, and solidifies the downtrend in sales that began in early spring. However, this is the second best result ever recorded for a month of July since Centris began compiling market statistics in the year 2000.
  • Sales on the Island of Montreal fell by 20 per cent compared to July of last year. For a second consecutive month, single-family homes registered the largest decrease in sales at 33 per cent.
  • Sales were down in all the periphery areas as well, and these decreases can also be attributed to a slowdown in single-family home transactions: Vaudreuil-Soulanges (-48 per cent), the North Shore (-38 per cent), Saint-Jean-sur-Richelieu (-31 per cent), Laval (-30 per cent) and the South Shore (-26 per cent).
  • All three main property categories registered a drop in sales compared to July of last year. Sales of single-family homes tumbled by 37 per cent, while sales of condominiums fell by 22 per cent. Plexes registered a more modest decrease in sales, with a 4 per cent drop in transactions.
  • The increase in the supply of plexes on the market (+27 per cent) contrasted with the drop in active listings for single-family homes (-37 per cent) and condominiums (-15 per cent).
  • In terms of prices, the median price of single-family homes stood at $500,500 in July, an increase of 18 per cent compared to July of last year. The median price of condominiums reached $360,000, a 16 per cent increase, while that of plexes stood at $670,000, up 7 per cent. The market is still in a situation of overheating, as almost half of all transactions in July were concluded at a price that was above the asking price. However, this situation has been easing for three months now.

The Quebec Professional Association of Real Estate Brokers (QPAREB) is a non-profit association that brings together more than 13,000 real estate brokers and agencies. It is responsible for promoting and defending their interests while taking into account the issues facing the profession and the various professional and regional realities of its members. The QPAREB is also an important player in many real estate dossiers, including the implementation of measures that promote homeownership. The Association reports on Quebec’s residential real estate market statistics, provides training, tools and services relating to real estate, and facilitates the collection, dissemination and exchange of information. The QPAREB is headquartered in Quebec City and has its administrative offices in Montreal. It has two subsidiaries: Centris Inc. and the Collège de l’immobilier du Québec.

Centris is a dynamic and innovative technology company in the real estate sector. It collects data and offers solutions that are highly adapted to the needs of professionals. Among these solutions is, the most visited real estate website in Quebec.

We seek Safe Harbor.

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White House Ready To Lift Ban On Foreign Travel But Only For The Vaccinated

White House Ready To Lift Ban On Foreign Travel But Only For The Vaccinated

As Canada prepares to welcome fully-vaxxed Americans into the country for the first time since the pandemic started, over in Washington, plans are brewing for the…



White House Ready To Lift Ban On Foreign Travel But Only For The Vaccinated

As Canada prepares to welcome fully-vaxxed Americans into the country for the first time since the pandemic started, over in Washington, plans are brewing for the US to reopen travel only to foreigners who can prove they are fully vaccinated.

According to a Reuters exclusive, President Biden and his administration are preparing a plan to require nearly all foreign visitors to the US to be fully vaccinated. The new policy will replace the current border restrictions, which bar travelers from most of the world from reaching the US.

Because COVID cases are still climbing, the White House isn't ready to simply lift all travel restrictions. That's where the border restrictions come in: The Biden administration has interagency working groups working "in order to have a new system ready for when we can reopen travel." When this happens, the US will start with "a phased approach that over time will mean, with limited exceptions, that foreign nationals traveling to the United States (from all countries) need to be fully vaccinated."

Last week, Jen Psaki, the White House press secretary, said the Biden Administration planned to maintain its travel restrictions on visitors from Europe and elsewhere. The announcement was a blow to the travel industry, which had hoped that a lifting of the travel bans could increase tourism for the remaining summer months, helping hotels, airlines and other businesses that have been struggling since the start of the pandemic.

Even the liberal Washington Post complained about Biden's decision to continue restricting travel, with one opinion writer claiming that the continued moratorium on international travel was both "medically unnecessary and financially unwise," per WaPo.

However, we suspect some foreign governments might be offended when the US inevitably excludes travelers who received a foreign vaccine, including those made by Russia and China. Or when foreigners from certain countries have been shut out of the US for years, as the developing world waits for the emerging world to catch up on vaccinations.

Washington's cautiousness mirrors the return of travel restrictions in Europe, where pubic health officials are cracking down to combat the delta variant. The report comes less than a week after President Biden announced new requirements for federal workers to get vaccinated (with a handful of exceptions). But on the bright side, pretty soon, Americans might be flocking to the Caribbean to make up for two summer travel seasons spoiled by the pandemic.

Tyler Durden Wed, 08/04/2021 - 17:30

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