Jim Rogers buying the airline stocks/ bonds.. I think this is a big mistake. The conflict in the Middle East doesn't show any signs of slowing down. What is your take on this?
I guess when you think he's mistaken, what you would do is go short! Then again, he's got a long record of being right...how's your record? OldTrader
I would argue that airline tickets are a commodity. There's only so many "seats" being produced. The consolidation throughout the industry post 9/11 has left several carriers who are getting rich. High fuel costs have been offset by record business. It's cheaper to fly than drive and of course more productive also. For 70 years investors have wondered when this industry would have sustained profitability. That day's here......
Actually, he said this a bit over a year ago while visiting Singapore. I was shocked and thought he might be off his rocker at the time. Not sure if he is necessarily still bullish on airlines, but he's certainly done well with that call over the last ~18 months.