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).
Since the advent of deregulation in the Indian airline sector, aviation companies have been plagued by a lack of consistent profitability due to an inhospitable operating environment. Now the industry is in dire straits as a result of excessive competition, government interference, inadequate infrastructure, poor management, and rising fuel prices.
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.
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.