Southwest (LUV) is near its all-time high. Yes, President Trump seems to be talking up more fiscal stimulus, but LUV is trading at 14-15x PE and has run up 45% in the last six months. The weird part is Warren Buffett who hates airlines as a business has made a big bet on the domestic airline sector. Should be interesting to see how things play out over the next 18 months.
Disclosure: long LEAP put options on LUV.
“There have been three great inventions since the beginning of time: fire, the wheel, and Central Banking.”
– Will Rogers
“The fundamental flaw in the thinking of the conceited members of the National Assembly of France in 1790 was their mistaken idea that they could invent a money more suitable than gold to achieve the prosperity of France.”
– Hugo Salinas Price
“Diversification is a hedge for ignorance.”
— William O’Neil