Start the conversation
We all know what a lousy winter this has been. So if you've been doing any traveling, I'm hoping you haven't been victimized by one of the 75,000 commercial flights that the nation's airline industry has scrubbed since Dec. 1.
That's the industry's worst showing in 25 years, says The Associated Press.
As a frequent flier myself (I rack up some serious travel miles jetting from one CEO meeting to another, and then onto one of my media appearances on CNBC or FOX Business), I feel real empathy for those of you who've been stranded in a cold, uncomfortable airport terminal.
But when I saw these statistics, I knew there was a bigger story at play here – a story with the kind of financial heft that spells profits for investors who are savvy enough to zero in. Because this story has yet to hit Wall Street's radar screen, you have the chance to score major outsized profits.
And today,we're going to tell you all about this tech investing "foundational play"…
Flying the Friendly (Crowded) Skies
The world's aviation sector is experiencing one of the greatest booms in the 110-year history of flight. Indeed, the fact that we've seen so many flight cancelations in recent months gives you an idea of how many flights are actually on the schedule.
There's just no question that the world's skies are getting a lot more crowded.
The International Air Transport Association (IATA) – a trade group that represents 240 airlines – says the 5.2% increase in global demand last year was part of a long-term trend it labels as "historic growth."
The IATA didn't disclose the actual number of flights or total number of passenger miles flown. But it did say that every major region in the world saw an increase in flights in 2013.
And the skies are destined to get even more crowded.
Here in the United States, for instance, passenger traffic is projected to soar 50% in the next 10 years – zooming from 750 million today to 1.2 billion, the U.S. Federal Aviation Administration (FAA) said in its latest forecast.
No wonder there's so much demand for new commercial jet airliners.
A Flying "Ecosystem"
Look at what's happening with the U.S.-based Boeing Co. (NYSE: BA) and Europe's Airbus Group (OTCMKTS: EADSY). Together these industry giants now have a backlog totaling 10,000 aircraft. At current production rates, the two companies say it will take roughly eight years to build all those jets.
And that doesn't count the new orders the companies expect to get each year.
For tech investors, this represents the kind of substantive trend that can generate long-term profits. And unlike other, more-esoteric tech investing opportunities, the aviation book is easy to see and understand.
That's because so-called "Jumbo Jets" – the backbone of most global carrier fleets – are like aerial high-tech ecosystems.
We're talking about such diverse bits of technology as avionics, onboard computers, semiconductors, sensors, digital radar, communications systems, and flight-control units – all made to work together and then wrapped in a flyable cocoon constructed of such "Miracle Materials" as advanced composites or new forms of aluminum.
That's quite an investment menu – meaning we have a broad array of stocks to choose from. That makes for some tough choices.
But there's one profit play that gives us access to all those options – all at once.
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.