| | | handyman -- Here are some thoughts to consider in your strategy to accumulate more shares of Boeing.
1. Many airline executives and economists doubt that air travel will reach pre-pandemic levels before 2023. That means airlines will put off ordering new aircraft and may actually try to sell off or dispose of some of their older aircraft. British Airways is set to stop using its entire Boeing 747 fleet, both because it lacks customers and because the old 747 is simply as not as economical on fuel as newer aircraft. But the company is also not buying any new aircraft at this time.
2. The critical factor at Boeing is management quality. The former CEO, fired because of the 737 Max mess, held to a mercantilist strategy concentrating on cost savings wherever possible, including apparently the safety features designed to avoid a stall or pilot error. The cost savings ruined the company. Whether the new CEO will maintain that same mercantilist approach or change the culture to Boeing's traditional record of designing the safest aircraft bodies and controls is open to conjecture. The actions taken so far to rescue the 737 Max and obtain FAA approval are not all that encouraging – more of a band-aid approach, rather than a redesign.
3. Though you may have confidence in the economy returning to "normal" in a matter of a few months, that is a view not held by most economists, and even by most political leaders apart from a small group in the current administration. With gross domestic product down by the worst percentage since the Great Depression, the whole stock market is in danger of a major correction. This would result in almost ALL stock prices falling, including especially Boeing and other airline related firms, and including Apple as well. Why would this be a good time to risk building an investment in a company that depends on a growing worldwide economy?
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