Shares of the Herzfeld Caribbean Basin Fund (CUBA), a fund that invests in companies with sizable operations in nations in the Caribbean region, surged more than 10% Monday.
Cuba, of course, is a Caribbean nation. And all you need to do is check out the ticker symbol for the fund to get a sense of why it was red hot: CUBA.
Investors may be feverishly calling their brokers to get in on the Cuba action. But are they getting ahead of themselves?
Yes, the CUBA fund has investments in several U.S. stocks that could (emphasis on could) benefit from more normalized relations with Cuba.
For example, the CUBA fund's top holding is MasTec (MTZ), a construction services business based in South Florida that was founded by an anti-Castro Cuban immigrant, the late Jorge Mas Canosa. The business is now led by his sons.
Cruise line operators Royal Caribbean (RCL), Norwegian (NCLH) and Carnival (CCL) are all among the fund's top 10 holdings as well. So Is Copa Holdings (CPA), a Latin American airline based in Panama.
Investors should be cautious though. It may seem on the surface as if American businesses might finally be able to cash in. But that may not necessarily be the case.
The CUBA fund more than doubled in a little more than a week back in December 2014 when President Obama first announced plans to normalize relations with Cuba.
But that agreement may now be up in the air following the election of Donald Trump.
Trump tweeted on Monday that all bets could be off if Cuba does not actually make any significant changes to how it treats its people.
For the complete article please visit
CNN Money
ABOUT
Dynamic Wealth Research was founded on the principle the world is changing at an ever-increasing pace. The greatest profit opportunities an investor will ever find are from massive, sweeping changes. Dynamic Wealth Research analyzes and closely follows these changes, keeps its readers on the leading edge of them, and shows you how to be best positioned these anxious, interesting, and ultimately profitable times.
