Weighing in on the negative punch airline stocks have suffered since the COVID-19 outbreak, head trader at U.S. Global Investors Michael Matousek posed the questions: Are people going to stop going on vacation? Will businesses stop travel in perpetuity? Matousek says no, and that airlines are “oversold based on people’s fears.” Summer is just around the corner and once the outbreak subsides, Matousek believes that travel demand will slowly rise back to normal levels.
For investors bullish that the airline industry will recover after the pandemic subsides and travel picks up again, now might be the time for bargain hunting. Nathan Reiff, writing for Investopedia, says that airline stocks could be a good buy for those betting on a turnaround. As a way to get exposure to the airline industry, Reiff points out that “JETS is the best (and only) airline ETF.” JETS is referring to the U.S. Global Jets ETF, also known by its ticker symbol – JETS.
Reiff adds, “Unlike some other industries, which are tracked by several ETFs, there is currently only a single ETF specifically focused on airlines. The U.S. Global Jets ETF (JETS) is the only fund of its kind targeting the airline industry, making it the best (as well as the worst) performer.” At the time of the article, JETS was down 24.2 percent for the 12-month period.
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