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Message Boards Settings Continental Airlines, Inc. - Quote Info
Advanced Airline Investing      5-Nov-09 01:10 pm    
For those of you who recall last week's Introduction to Airline Investing, here is the first in what may become a series of more advanced lessons:

When the overall market moves up or down, some sector's stocks move with it but at a higher rate. This is called leverage, or "beta" for the cognoscenti.

Airlines have a special and unique beta relationship. They follow the "x5-x.5 (90-10) Rule." Here's how the rule works. When the market moves down, airline stocks move down at about 5x that rate. When the overall market moves up. airline stocks move at about a .5x rate; 10% of the time this is up with the market, and 90% of the time it is down in spite of the market. You can check out today's action for a real-world example.

We hope these lessons are helping everyone be better airline investors.
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johnb_dca

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  Subject Author Rating Time of Post (ET)  
 
Advanced Airline Investing
johnb_dca Not rated 5-Nov-09 01:10 pm  
 
Yes and 8 days a year airlines are up over 20%. On...
Imba97 Rate it 5-Nov-09 01:36 pm  
 
I must confess that I am dumbfounded why this...
iahphx Rate it 5-Nov-09 03:13 pm  
 
web tv conference calls.. no airfare.. ...
ttommy47 Rate it 5-Nov-09 03:30 pm  
 
by golly ... I think he's got it...
dfwskier@fl... Rate it 5-Nov-09 04:24 pm  
 
"Is airline investing THAT hopeless?" ...
wgrsh Rate it 5-Nov-09 07:29 pm  
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Continental Airlines, Inc. (CAL)

Chart for Continental Airlines, Inc. (CAL)
On Dec 31: 17.92 Down 0.03 (0.17%)
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