Phew! The stock market recently has calmed down after a highly volatile first six weeks of 2016. While we may not be out of the woods, the sky-is-falling panic seems to have been overblown. Let’s use this breather to review three recommendations from late last year and assess if they’re still worthy. Boeing (NYSE: BA), which I recommended in December, has fallen sharply since then, for two reasons. First, investors’ rising concerns about economic growth in China and India led them to dump Boeing, which expects strong demand for commercial aircraft from those countries for years to come. Second, the… Read More
Phew! The stock market recently has calmed down after a highly volatile first six weeks of 2016. While we may not be out of the woods, the sky-is-falling panic seems to have been overblown. Let’s use this breather to review three recommendations from late last year and assess if they’re still worthy. Boeing (NYSE: BA), which I recommended in December, has fallen sharply since then, for two reasons. First, investors’ rising concerns about economic growth in China and India led them to dump Boeing, which expects strong demand for commercial aircraft from those countries for years to come. Second, the U.S. Securities & Exchange Commission last week announced that it was looking into Boeing’s use of “program accounting” methods for its 747 and 787 Dreamliner lines. While the SEC may decide there’s no problem, the cloud cast over the company led to another selloff. #-ad_banner-#In my view, both issues are legitimate concerns, but ones to which the market overreacted. China and India are not in or near recessions; they remain in strong growth modes, albeit slower than expected. Their orders for commercial aircraft are booked years in advance and are not expected to slow considerably as a result of their… Read More