DaveinHackensack

Are Airlines Stocks a Contrarian Opportunity?

Jim Rogers mentioned he was investing in airlines recently, though I doubt he's buying any U.S.-based ones. In addition to high oil prices, the deregulated U.S. market is hyper-competitive, so airlines have struggled to profit even with relatively low energy prices.

If you are looking to make a bet on a short-term correction in the secular bull market in oil, a lower-risk play may be to buy shares of a solid, pure-play oil refiner such as FTO. A drop in oil prices will widen crack spreads and profit margins for refiners.