This morning we've made another purchase in shares of Boeing (BA) at 190$ price level. Our position in Boeing currently is 2.5% of our portfolio (compared to the initially allocated 3%), with average cost basis of 199.22$/share. 

We made this move following another downward move in the stock following really no company-specific weakness, but rather broader-market weakness related to the FOMC monetary decision this afternoon. Whenever there's a broad-market induced sell-off that significantly drives the stock price lower without any company's specific news, we always think of it as a buying opportunity. If anything, this price level is BEFORE the recent nod of Chinese aviation authorities to re-certify the B737 Max (we wrote about it here).

Buying Boeing in the 190$/share makes sense, because this is the level we've not seen since before the discovery of Covid vaccines. The fact that Boeing stock gets back to this level suggests that the outlook for Boeing specifically and the aviation industry in general is as dark it was during the depth of the pandemic, before the discovery, widespread administration and now mass adoption of Covid vaccination. Do you agree with that? We don't, and we believe this is an incredible buying opportunity.

Now let's talk about position management. We still have 0.5% to add if Boeing goes down more. We're also willing to increase the allocation if the price gets much more attractive than here (for example, in the case that we're down 10% or 20% from our cost basis). In the most optimistic case, Boeing breaks the downtrend and heads back to 2021's high in the $260s, and that would represent a 30% gain for us. In the most doomed case, Boeing gets to 140$/share, the low right before vaccine discovery in November of 2020, posing a 30% decline risk from our cost basis. In such decline, we'd be willing to deploy our cash position and increase the % allocation for Boeing in our portfolio (perhaps from the currently 3% to 6-8%). Again, we just don't see travel, travel outlook and ultimately airplane demand gets to levels DURING the pandemic, pre-vaccination.