Stock market volatility can spell trouble not only for Wall Street, but also for Main Street.
According to Royal Caribbean International CEO Michael Bayley, consumer sentiment has been strong lately. But concerns about the stock market have the power to translate into caution at home.
"The only blip we've seen is volatility in the stock market," Bayley told TheStreet. "A few weeks ago when [the Dow] dropped 1,000 points, I think there's a little minor freakout from people. There's anxiety and that's inevitably not good for people's consumer confidence."
Aside from February's stock selloff, consumer confidence has consistently buoyed bookings for Royal Caribbean International, a subsidiary of Royal Caribbean Cruises Ltd. (RCL) . A strong economy doesn't hurt either.
The U.S. economy grew 2.3% in 2017, unemployment was at 4.1% and headline inflation was 2.1%.
"It's always so much better when the economy is good and consumers are feeling good," Bayley said. "It's a beautiful thing."
Bayley clarified that despite the "minor freakout" that followed the market selloff a few weeks ago, Royal Caribbean's business hasn't been impacted in any meaningful way.
"It's a short-term impact...when people see volatility, they become mildly anxious. But I think it passes," Bayley said.
As the stock market works to recoup February's losses, Royal Caribbean is heading into its busiest season of the year. Hopefully a possible April correction in the markets doesn't sink the cruise line industry's ship.
Check out another CEO interview from TheStreet below: Kraft Heinz (KHC) CEO and 3G Capital partner Bernardo Hees.