Quote:
Originally Posted by Discuss Thrower
It is your money but buying airline stock is accepting an outsized amount of risk without a corresponding increase in reward.
It took years for airlines to rebound from 9/11. Then people were afraid of being collateral damage in a highly improbable terrorist attack.
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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?