As a result of the conflict in Ukraine, Boeing stock has plummeted. Many people are criticising me for focusing solely on the positive or the bad aspects of a situation, or accusing me of doing so.
Because this current issue is so complicated, it requires full-time work to write about it from multiple perspectives, and you’ll likely end up with a book that’s 50-100 pages long.
While a reader, I know you’d prefer it if I covered everything at once, but please be patient with me as I work through this war on a personal and professional level. The situation in Ukraine is one of many large issues that are covered in multiple articles as part of our coverage. When you read only one of my reports, it would be a mistake to think that you’ve read it all and make an opinion about what you’re missing in a report based on that, as there’s a good chance we already have a report that covers what you’re missing.
Air Travel Is a Resilient Mode of Transportation
Boeing is a good investment opportunity because of the company’s ability to withstand adversity. Despite the ripple effects of shocks, the industry as a whole appears to be resilient. Aviation travel is still on an upward trajectory despite the worldwide shocks that followed the September 11, 2001, terrorist attacks as well as rising energy prices, recessions, and the flu epidemic. As a result, price declines like the one we’re seeing now present an opportunity for long-term investors.
There Is No Way to Foresee the Unexpected
Boeing will be alright in the long run. A similar situation occurred before, and the world will eventually need a large number of new planes.
An increase in natural travel demand, according to the company’s most current forecast, will necessitate 43,610 new passenger jets being delivered between now and 2040. Because no one commercial jet manufacturer will be able to produce so many planes in the near future, Boeing’s market share should remain substantial. Investors who have been holding the Boeing stock since 2019 are comforted by this longer-term pattern.
Investors who are honest with themselves wish they had known what they know now at the time of their investment.
It’s easy to slip into this trap while making stock picks on an individual basis. A lot of fun is had when you find the proper one. Choosing one that plunges headlong into unanticipated difficulties, on the other hand, can be damaging. In addition, half of Boeing’s stock since 2019 has exacerbated that pain. Additionally, a missed opportunity exists. When COVID initially arrived in the United States in early 2020, the Dow Jones Industrial Average was down 34% from its high. However, this sell-off has more than made up for it.
First Think About Your Personal Situation
Be clear: every investing option has both advantages and disadvantages. The Dow Jones Industrial Average’s 30 equities, including Boeing, are no exception.
Boeing, for example, will reap the benefits of the COVID-19 pandemic’s ultimate recovery of leisure travel. For years to come, the 737 MAX’s concerns might tarnish the company’s reputation. Blue-chip stocks might face headwinds from time to time, and the Dow is no exception. Dow components Intel and 3M, for example, have both been underperforming for some time now, which has had a negative impact on the index’s performance.
Investors face a variety of circumstances. With a brand like Booking Holdings or Hyatt Hotels, you may already be well-versed in the travel sector. Adding a second related stock to your portfolio may or may not increase your portfolio’s diversification. If you don’t own cyclical stocks, you may be missing out on any gains from a continuing economic rebound.
For the vast majority of investors, the Dow Jones Industrial Average is a better choice than Boeing if the risks and rewards are almost comparable.
So, Is It Wise to Put Money Into Boeing Stock?
Boeing has had a difficult few years. Although no company is invulnerable to failure, Boeing will be difficult to put down for an extended period of time. Demand for air travel is on the rise, but new pandemics and lockdowns are still possible in the future. If this happens, Boeing is definitely in jeopardy.
For the time being, it’s all about faith and familiarity with the business. For those who are confident in Boeing’s ability to stay ahead of changing trends in the airline business; it may be worth your time to invest in Boeing stock. The risk-averse, on the other hand, may want to steer clear for the time being.