Here we go again . We made it back to our favorite shorting line yesterday as the S&P 500 ( /ES ) once again tested the 2,800 mark, failing to cross it into the very fake, Fake, FAKE close and already down 14 points this morning but still up 35 from the 2,750 open so we'll have to see how things go on the first real day's trading of the week . Boeing (BA) came all the way back to $400 at the day's end, down "just" 5% after being down 12.5% at the open but we're not bottom-fishing BA as there remains an open question as to whether their primary plane is safe enough to fly and it probably is, but BA is no bargain at $400, which is $225Bn for a company making $10Bn a year so p/e about 22.5 and I'm certainly more than 10% less sure BA will be able to justify that multiple than I was last week. Other investors seem to feel differently but there's no way I'd take that risk right now. As noted, this is a political issue as much as a corporate one and we can't really trust the FAA under Trump to make an impartial decision so we can expect a lot of countries (who don't trust Trump either – see why we watch those polls?) to ground 737 Max planes until their own agencies can re-certify the aircraft. IN PROGRESS
Here we go again.
We made it back to our favorite shorting line yesterday as the S&P 500 (/ES) once again tested the 2,800 mark, failing to cross it into the very fake, Fake, FAKE close and already down 14 points this morning but still up 35 from the 2,750 open so we'll have to see how things go on the first real day's trading of the week.
Boeing (BA) came all the way back to $400 at the day's end, down "just" 5% after being down 12.5% at the open but we're not bottom-fishing BA as there remains an open question as to whether their primary plane is safe enough to fly and it probably is, but BA is no bargain at $400, which is $225Bn for a company making $10Bn a year so p/e about 22.5 and I'm certainly more than 10% less sure BA will be able to justify that multiple than I was last week. Other investors seem to feel differently but there's no way I'd take that risk right now.
As noted, this is a political issue as much as a corporate one and we can't really trust the FAA under Trump to make an impartial decision so we can expect a lot of countries (who don't trust Trump either – see why we watch those polls?) to ground 737 Max planes until their own agencies can re-certify the aircraft.
IN PROGRESS
