Why Boeing Shares Are Falling Today
Shares of Boeing (NYSE: BA) traded down more than 8% on Monday, hitting lows unseen since the early days of the pandemic. Investors are increasingly pricing in a recession, and expressing with their feet their belief that Boeing will not be a safe haven stock if conditions go south from here.
Historically, Boeing has been a bad investment during recessions. The company makes big-ticket airplanes and the customers who buy them, the airlines, tend to be more focused on survival than expansion when demand softens.
On Monday, Wall Street was firmly in sell mode as investors continue to worry the Federal Reserve's efforts to tame inflation will lead to a recession. Neither high inflation nor a recession is good news for the airlines, as consumers and businesses tend to forgo big-ticket items like plane tickets if belt-tightening is needed.
Source Fool.com
