Assessing Boeing Stock As 737 Max Investigations Continue | IBD Live | Summary and Q&A

TL;DR

Investors face challenges when investing in Boeing stock due to unexpected news events and the company's volatile performance.

Key Insights

• 📰 Unexpected news events can significantly impact stock performance.
• 💇 Cutting losses is a crucial rule for investors to protect their capital.
• 🍉 Boeing's short-term challenges include poor earnings and decreased demand for aircraft.
• ❓ The 737 Max debacle has further complicated Boeing's situation.
• ✋ Investing in turnaround situations carries higher risks.
• 🌐 The extent of the 737 Max issue's impact on global operations is uncertain.
• 🦺 Quick resolution is essential for the safety and confidence of travelers.

Transcript

[Applause] what should one do when you've got a stock that you know comes out of a base like this it's it's looking fine I mean this you know for all intens purposes looked like a just normal pullback to the top of this base where it was getting support and then this news comes out of the blue um you know what what what should an investor do that b... Read More

Questions & Answers

Q: What should an investor do when unexpected news affects the performance of a stock?

An investor should follow the rule of cutting losses and consider selling the stock, even if it was bought at a good entry point. This allows them to protect their capital and potentially re-enter the stock later if it shows strength again.

Q: Why is cutting losses a black and white rule for investors?

Cutting losses is a strict rule because it helps protect investors from significant losses. It is especially important in highly liquid stocks like Boeing, where investors can easily re-enter the stock if it recovers.

Q: What are the challenges of investing in Boeing?

Boeing has faced challenges in the short term, including poor earnings and decreased demand for aircraft due to COVID-19. Additionally, the 737 Max debacle caused damage and loss of life, making it a risky investment.

Q: How many Boeing 737 Max planes are currently in operation worldwide?

The exact number is uncertain, but the majority of these planes are held by airlines like United and Alaska in the US. It is unclear if this issue will expand to Europe and Asia.

Summary & Key Takeaways

• A stock investor is faced with a sudden news event that impacts the performance of Boeing stock.

• Cutting losses is a black and white rule for investors, even for stocks like Boeing.

• Boeing has faced challenges such as poor earnings, decreased demand for aircraft, and the 737 Max debacle.