

As we know, the decision to be long oil or oil services stocks and short airlines stocks was an easy strategy to follow. As cruel oil soared, airline balance sheets got burnt. Their losses are mounted and their market capitalizations plummeted. However, the oil stocks doomed day came on July 2008. The entire situation reversed from the peak $200 drop to mid $30 level. Crude oil and other commodities were abandoned by speculators.
XAL (Airline Index) vs XOI (Oil Index)
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