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Bailouts: Be Careful What You Wish For
By Singapore Stock Picker  •  March 27, 2020
Recently, an ex-colleague of mine gave me a hot tip. Boeing is a really cheap stock! It fell from US$380 to US$120. He started selling put options on Boeing in 2019 after signing up for an investment course with a “guru”. Based on his guru’s advice, he started buying Boeing stock and trading the options. Here are his reasons for investing. Boeing’s groundings are temporary. The travel industry will recover from COVID19.Boeing is financially stable.Even if Boeing comes close to insolvency, the government will bail it out. I got curious and took a quick look. I rejected the company as out of my league of expertise. Let me explain why. Point 1: The Disruption is Temporary. For those who are unfamiliar, Boeing is a big deal in the aviation sector. The plane maker is part of a duopoly in the commercial aviation industry. If you wanted to buy planes, you...
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By Singapore Stock Picker
I am a full time electronics engineer at a government linked company in Singapore. I enjoy most of my work and it pays reasonably well. However, I dislike waking up early and following a 9am-5pm lifestyle. That’s why I started picking up investing. I want to end up retiring from full time work by 40 and having the option to not being a slave to any company ...
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