Category Archives: Buying Dips
This week I’d like to address something that most investors never think about… how to trade a stock when the unthinkable happens.
The Boeing Co. (NYSE:BA) is a great example.
It’s a key defense contractor and a “must-have” stock, tied into several key Unstoppable Trends, including Technology, War, Terrorism & Ugliness, and Demographics.
The company’s under extreme pressure at the moment, and existing shareholders have taken a $26.6 billion buzzcut they didn’t sign up for.
For most investors, a situation like this is unthinkable.
One day, they buy a company based on super results, super products, or just super potential. Then… WHAM… the stock gets pounded.
Boeing opened, for example, a full 51.29 points lower Monday, following the crash of Ethiopian Airlines 737 Max 8 the day before – the second such crash in less than six months for a 737 Max 8 aircraft. Then, it dropped further, ultimately breaching $370 a share by Wednesday.
Thing is, this isn’t an isolated incident.
Here’s why and what you can do about it.
The Boeing Co. (NYSE:BA)’s stock has gotten a $26.6 billion buzzcut since Sunday’s 737 Max 8 crash, and more than a dozen countries have now ordered the jets taken out of service. What’s more, in a stunning about-face, President Trump has ordered all 737 Max 8 and 737 Max 9 grounded.
Millions of investors are wondering what to do next and you’re not alone if you’re one of ’em.