As the Chinese economy (FXI, quote) continues to slow and the Chinese benchmark indices continue to lag, many equities are decreasing in value as a result. Investing in multinationals with exposure to the Chinese economy however, you can take advantage of China’s growth without worrying about the intricacies of the opaque Shanghai Composite. One such company is Boeing (BA, quote).
The aviation industry reaped a big payday as Muslims across the Indonesian archipelago flew home for Idul Fitri, the celebration that follows the Islamic holy month of Ramadan. Both domestic and international carriers benefited from high consumer demand for air travel.
Because developed market airline stocks have traditionally underperformed other sectors, investors frequently overlook emerging market counterparts — such as Panamanian based carrier COPA.
While many air carriers around the world such as American Airlines (AAMRQ, quote) are filing for bankruptcy or warning of huge earnings declines like Qantas (QUBSF, quote), Irish discount airline Ryan Air (RYAAY, quote) is hoping to expand with a hostile bid for Aer Lingus, “the flag carrier of Ireland.”
Emerging Money author Jonathan Yates made a number of compelling points as to why airlines from developed nations mostly make for terrible investments. However, investors and traders alike can find a lot to like about emerging market airlines.
While it may be old hat in investment circles to advocate the categorical avoidance of airline stocks, this overly-reductive adage overlooks the very real benefits of short-term trades in airline stocks.