Tuesday, December 29, 2020
In case you missed the memo, we’re ending the year on a visual note.
Each day this week, I’m selecting a chart to highlight a key investment trend from 2020 — a trend I fully expect to keep charging higher (or lower) as we turn the calendar to a new year.
And as always, I also share actionable insights, so you can start profiting right away!
Today’s chart is about a trend that’s literally taking flight. Don’t miss out…
Back to the Blue Skies
With more and more vaccines becoming available each week — and with cabin fever hitting unbearable levels — the clarity of today’s chart doesn’t surprise me a bit…
As I told you earlier this month, the most reliable leading indicator for when to bet big on an airline rebound is simple: the number of travelers cleared through TSA checkpoints.
And as I write these words, this signal is flashing a bright green “Buy, Buy, Buy!”
More specifically, in six of the last 10 days, the number of daily travelers has topped one million.
This key level hasn’t been spotted since — you guessed it — the pandemic started.
AAA predicted that 85 million Americans would travel by car during the holidays.
But now that millions of others are taking flight, airline stocks should start taking flight, too!
Remember, once passenger traffic picks up, the fundamentals are in place for airlines to earn healthy future profits. I’m talking about extremely reduced capacity and low oil prices.
But as I’ve explained in the past: “By no means do I think anyone should rush out to buy a single airline stock. There’s no guarantee which ones will rebound the quickest. Or even survive.”
Instead, I recommend buying the U.S. Global Jets ETF (JETS).
First of all, JETS provides immediate exposure to a portfolio of 40 airline and airline-related stocks, thereby reducing risk.
Secondly, it charges a reasonable expense ratio of only 0.60%.
And lastly, it’s already in an uptrend, with plenty of upside remaining.
Don’t miss out!
Ahead of the tape,