Airlines and The Economy
I'm obviously stunned it happened so fast at the very least wouldn't of been buying UAL and TRIP earlier in the day, if I thought this was gonna happen. End result here is it could be a couple of things, the companies could of been too optimistic, being that q1 is a weak quarter to begin with, and could pick up in q2. Could we just be getting to the point of travel fatigue, that everybody has taken the trip they wanted to take so to speak. Not great for the travel stocks but that could just mean a shift in consumer spending to other areas in the economy, not the end of the world, just not great for travel stocks. The third, is we have a economic slowdown on the way, possibly a recession. It isn't helping with the constant attack of tariffs everyday (creating all kinds of uncertainty).
Truth be told I think we are slowing, we may have some form of travel fatigue, and the airline may have been too optimistic in a typical slow seasonal quarter anyways. At least that is my take, I also think if you worried there will be a better place to sell broadly in the market (Not necessarily travel stocks), because I think there is a good chance the markets hits at least a short-term trough tomorrow (With a nice gap down opening), we finally have the technical setup for that in my opinion. All is just my opinion, and I could always be wrong though.
AI
