Time for Southwest Airlines to Takeoff on a Dovish Fed?
Jerome Powell speaks tonight and market expectations are that he maintains a dovish hand. The loose monetary policy outlook means that stocks should still find room to gain. Furthermore, the vaccine inspired global recovery means that airline travel should grow and grow into the year-end. Does this mean that Southwest Airlines Co is well placed to take advantage of its strong seasonal pattern?
Between August 07 and December 07 the Southwest Airlines Co share price has gained in value 09 times over the last 10 years. The largest fall was in 2018 with a -11.09% loss. The biggest gain was in 2014 with a 50.44% profit. The average return has been 20.91%.
Key Trade Risks: If the Fed take a hawkish twist tonight stocks could see a sharp correction lower as markets price in lower company earnings on higher debt repayments.
Giles Coghlan
