We have great vaccine options from Pfizer and Moderna. There will probably be more vaccine options by the first quarter of next year. As many of you know, I love to travel. It seems like the ideal time to take advantage of the cheap fares available today. I want to buy the tickets out as far as possible, but I'm also looking at the strength of the airlines. I'm not exactly comfortable buying a ticket on an airline that may go bankrupt.
Like every consumer out there, I looked up debt to equity ratios (D/E) for major US carriers. This ratio measures how much debt a company has in relation to the amount of owner's equity. Generally speaking, the lower the number, the better. Southwest Airlines has the lowest D/E ratio, but you can only book out to April 2021. Spirit Airlines allows you to book flights all the way out to November 2021, but it has a higher D/E ratio. I'm looking to book a trip to the east coast, and I want to fly direct, so I'll probably go with Delta.
Despite all the adverse circumstances in the world today, the US stock market continues to push higher. The DOW is up nearly 13% for November. Unless the markets trade-off significantly on Monday, November will be the strongest month for the DOW since January 1987. The DOW should continue this trend in December as it is the path of least resistance. Furthermore, historically December has been the best month of the year. In this case, let’s hope history repeats itself.
ETF of the Week: iShares Core Small Capitalized ETF (IJR)
iShares Core Small Capitalized ETF (IJR)was the best performing ETF last week at 3.89%. IJR invests in companies with a market capitalization of $600 million to $2.4 billion. Small Capitalized Stocks are known for being much more volatile than the bigger cousins S&P 500 ETF (SPY). Companies in SPY must have a market capitalization of at least $8.2 billion.