While the airline industry tanked last year due to travel limitation, they have been pushing higher since the 4th quarter. However, the levels are yet to reach pre-pandemic. This suggests a long term investment opportunity.
I wrote on Tue about the impact of a fall in the economy on the stock market's prospects. But what will happen when the economy bursts with flying colors? Obviously if you consider the current situation, you can see how the economy is reverting back. Although the stock market didn't stay in the dips like the economy for a long time, the reversal in the economical situation should have an impact. I believe the impact could be negative, but a short term one. Because, when the economy begins to have positive prospects ahead of it, it could be a bull situation for the market too. Consider this, the stimulus checks that the government paid pushed the stock market higher, now imagine people having stable full time employments! Of course the government will increase the interest rates and prevent the inflation from going out of control but bing spending will be inevitable.
Iran is back to JCPOA discussions. Do you see any impacts on the oil industry or any other stock market sectors? Does it even matter anymore?
Let me know you thoughts.
Kepp smiling and stay charitable.
Comments
Post a Comment