I would have thought that investors would have ditched cyclical stocks with the impending recessionary environment hitting global shores , and it might take Flight Centre's profit warning , which caused its sp to drop 10% today, to remind us that global uncertainties as we now face will hit the travel sector . This is a sector that is one of the hardest hit during a crisis- during the GFC, Flight Centre (FLT) share price dived almost 90%. So far it has done about 36% drop from its mid year peak and I believe it has way to go in its southward bound trajectory after breaching its MA50 and its recent low of $43.
Just like the building materials sector stocks, dire profit warning from travel sector is another indication that the downturn is starting to bite into earnings.
Unfortunately, complacency is well and truly alive at this point.
