Speaking with Bloomberg’s Guy Johnson in London, Frank Holmes suggests that investors consider the U.S. Global Jest ETF (JETS) as a way to play low oil prices. After emerging from bankruptcy more than five years ago, airlines restructured their business, and today they’re benefiting from lower fuel costs.
“Falling oil prices are very significant to their growth,” Frank says.
This has helped change the longstanding attitude that airlines are a challenging space to make money in. As Frank notes, even American Airlines CEO Doug Parker requested to be paid not in cash but in company stock.
Watch the interview, “Oil Outlook: Where Will Prices Head Next?” on Bloomberg.com.
Article summary written by U.S. Global Investors.