I never own airline stock, ever. Well except for a few hours twice each year.
Having my employment hitched to a wagon that's this vulnerable to large swings (the industry in general, not commenting on specific airlines), I don't see a need to double-down on the exposure by buying stock that could liquidate when I'm furloughed.
I knew all that before this happened, glad to see that Warren finally caught on too
I think airline stocks, such as they are right now, were artificially propped up by the fed... but the fed had good reasons (national economic infrastructure). They might do it again next month, six months after that vaccines should be deployed. Consider if they had not done anything... right now at least four of five legacies would be in Ch.11 or likely even worse, along with some other majors. Deep-pocket private investors would be willing to support a couple majors... but ONLY on the condition that many others are likely to fail, that's the only environment where the risk would make sense. Multiple major failures would leave the one or two guys standing in pretty good shape, even with travel at 30%. That would not be a market-based adjustment, that would be a long-term national economic catastrophe, because other economic sectors do require air travel..
I also agree that the market as a whole is looking forward a couple years, reasonably so, but I'm surprised it's as high as it is. My investment guy wants to meet with us this week... at our house
He's never done that before, curious what he's going to have to say.