According to an article released from ETFdb.com on December 10, after analyzing the search patterns of visitors to their website at this time, “Airlines” came up as a top 5 searched-for topic. By looking at these trends, the group hopes to gain a better understanding of investment themes trending in the market.
Oil prices are expected to go lower in 2016 (especially following the Federal Reserve decision to hike interest rates on December 16 – which did happen), and this could be one reason airlines rose to the top. Low oil prices is a plus for airline companies because as the article states, “a huge chunk of their expenses are oil and gas commodities.”
Read the full article, “ETF Trends December 10: Oil; What It Means for Airlines and MLPs,” on ETFdb.com.
Article summary written by U.S. Global Investors.