Warren Buffett Bets Big On Airlines

Warren Buffett Bets Big On Airlines

As one the most exposed industries to global travel disruptions, airlines have seen a deeper selloff than the market and now look like an attractive bargain.. So far, COVID-19 has had a far greater impact on global airline stocks than the 2002-2003 SARS epidemic did.. Airline stocks found their bottom on the 77th trading day into the SARS epidemic, down approximately 25 percent.. You can see the amount of money printing the Federal Reserve had to do in the days following the 2008 crisis.. The Fed has cut rates between regularly scheduled policy meetings only six times since 1998, and in each instance, it cut rates again at its next meeting-March 17, in this case.. There could be other deals than airline stocks for bargain hunters.. According to CLSA, stocks have historically been up 86 percent of the time 10 trading days following these conditions.. The risk may be too high for some investors, in which case I recommend gold as a diversifier.. I cover gold, natural resources and emerging markets, melding macro ideas, such as supercycles, government policies and behavioral finance, to investment opportunities..