Investors Bullish on Airline Stocks as Oil Falls
Frank Holmes joined Akiko Fujita on CNBC Asia to discuss how the falling global purchasing manager's index (PMI) and lower oil prices might affect the airline industry.
Frank Holmes joined Akiko Fujita on CNBC Asia to discuss how the falling global purchasing manager’s index (PMI) and lower oil prices might affect the airline industry. Frank notes that oil has fallen into bear market territory, causing investors to pay closer attention to airline stocks. Airlines benefit from a low oil price, as it is one of their top operating expenses along with labor. Frank believes oil will continue to drop as we approach year-end and that airlines will pick up steam.
For Frank’s full forecast of oil prices and the airline sector, watch the replay below.
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The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (09/30/2018): Boeing Co/The.