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).
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.
Airlines are considering energy assets as a hedge against rising fuel costs, which highlights a profitable inverse relationship between airline securities and energy stocks.