Posted on 10/01/2014 11:01:34 AM PDT by blam
Industrials have been off for a couple weeks now but what we're talking about here is airline stocks and here's how this week's airline sector index is doing:
Down 5% today. Sounds dramatic but that index has a regular habit of making those kinds of jumps w/o ebola, and airline stocks have been a darn good buy for a couple years now:
And this will get worse. Much worse before it gets better.
We have already cancelled our Thanksgiving travel plans by air and probably by car as well.
We will exercise an abundance of caution until we are convinced it is unnecessary.
Part of the reason is that the airlines do business in a manner that is antagonistic to their customers.
1. If there’s 300 people on a flight you’ll be hard pressed to find two of them who paid the same total amount for their flight. Even on Southwest.
2. When an airline sells enough seats to cover their costs they RAISE the price on the remaining seats.
3. When you need a last-minute ticket due to a family emergency you can expect to pay two-to-five times the standard rate for the ticket.
4. They charge fees for EVERYTHING.
5. They excel at losing your luggage to the point that a close friend of mine sends her stuff Federal Express to make sure it gets there.
&etc.
A big thanks to the Gods over at the CDC....
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