The Airline Index and 9/11

Michael Batnick has this great investing post up called the ‘Satisfaction Yield‘.

It would take twenty-five years before the Dow reclaimed its 1929 peak. Over that time the United States had four different Presidents and we built the Hoover Dam, the Empire State Building and the Golden Gate Bridge. The Hindenburg exploded, the F.B.I was established, the atomic bomb was dropped, Jackie Robinson broke the color barrier, and the world experienced its second great war. It only takes a minute to look this up, but these events actually played out over thirteen million minutes. This is why I like to say that history gets lost in the charts.

In this ‘pinch me’ phase of the bull market or ‘inconceivable rally’ that is being ignored by most, this one chart today stood out.

The airline index closed at it’s highest level since 9/11:

Airline Index closes at its highest level since Sep 10, 2001, filling the post-9/11 gap after almost 16 years. $XAL

— Charlie Bilello, CMT (@charliebilello) Jun. 7 at 09:12 PM

On 9/11 I was sitting at my desk in Phoenix watching CNBC as the planes struck the World Trade towers. I look today at the airline index chart and that massive gap down after the attack and you can see how heavy the markets were leading up to 9/11 and in hindsight it’s as if the bad guys that planned the attack had also placed their financial bets.

Pure evil. The markets do not lie.

Time will never heal the wounds of 9/11 but time has healed the losses and wounds to the airline index.

So to Michael who I love I would say history is not lost in the charts, but remembered.


Also published on Medium.