I’m sure you’ve heard by now that President Trump made the executive order to ground all Boeing 737 MAX planes on Thursday.
The new fuel-efficient models are a huge cash flow driver for Boeing Co. (NYSE: BA), making up about 25% of total sales. So after Trump’s order hit, Boeing’s stock responded. Shares have now fallen a drastic 11%, wiping over $25 billion off the aircraft manufacturer’s market value.
Boeing makes up more than 10% of the Dow, so this drastic loss dragged down the entire market as a result. And investors across the board immediately began adjusting their portfolios in an attempt to offset the falling market. But here’s the thing – that’s exactly what Wall Street wants you to do.