Quote:
Originally Posted by mililo4cpa
These are good points for sure, and no disagreement from my end. But I see these situations as apples v. oranges
I think the human emotion involved in 9/11 was just as big as factor as the real liability related to it. You rightly point out that people didn't want to fly back then. That, to me, is what drove a lag in recovery.
In this case, I don't any raw fear of flying....once things are copasetic, I expect everything to return to normal. People are clamoring to get out, and once it's announced it's OK to travel, people will do so. The fear factor is minute in this situation (this is all my opinion, right or wrong)
In the meantime, there are 8 billion reasons (right now) as to why I don't think airlines will go under, and with the prices where they are at, why not make a speculative buy if you can afford to do so?
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Basically, going long on airlines is betting on "business as usual" within this calendar year.
That ain't happening.
You're burning cash on that assumption. It's your money, but if I were managing it, I wouldn't touch airlines.