Re:Why is the stock market rallying when the economy is so bad?
by matthewdgreen on Monday May 11, 2020 @08:12AM
(#23141254)
It’s much more likely that the other incumbent airline businesses just soak up that business, or the loss of competition sees price hikes across the board. Airlines are hard to spin up.
TL;DR if the sector as a whole is healthy, and you’re willing to balance an investment portfolio across the whole sector, then your exposure to future revenues should be fairly healthy even if one company goes bankrupt. But you’re absolutely right that prices don’t behave as though this is the case.
TL;DR if the sector as a whole is healthy, and you’re willing to balance an investment portfolio across the whole sector, then your exposure to future revenues should be fairly healthy even if one company goes bankrupt. But you’re absolutely right that prices don’t behave as though this is the case.