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The 51st Bi-Annual Paris Air Show was the event of the year for the Aerospace industry.
Held in Le Bourget Airport in Paris, France, this prestigious air show has brought together industry leaders from across the globe to hunt for new commercial opportunities – and over 2115 exhibitors marketing their latest and greatest projects – for the last century.
As the largest and longest-running aerospace trade show in the world, the Paris Air Show features companies from over 44 different countries, 285 official delegations, 3,100 international journalists, and nearly 139,000 professionals year over year.
But you don't have to be perusing the Parisian halls of Le Bourget to be a part of the action.
For investors like us, the Paris Air Show is a tipping point for the entire aviation industry. Investors look at this week-long battle royale as a make-it-or-break-it moment to see who will be the leaders in this highly competitive industry and who is likely to come up short.
I've been telling you for two years now that we are in the midst of the largest aviation boom in history. This is an industry that analysts believe could soon topple $5.6 trillion in the next few years.
No doubt, that's a big number. But it greatly understates the potential that tech investors can find in aviation-related plays.
And today, I'm not only going to show you how you can profit from that boom, but I'll also reveal the one investment that balances safety and stunning market-beating returns.
Wall Street Got This Dead Wrong
If you listened to Wall Street, the 2015 Paris Air Show was destined to be a bust for America's leading commercial jet makers.
Just take a look at what analysts were projecting for the world's leading aircraft maker, Boeing Co. (NYSE: BA).
The Street projected Boeing would walk away from the show with meager sales of around 200 jets.
To put that number in perspective, 200 jets would have been roughly half of what it received in the 2013 show after unveiling the new flagship 787 Dreamliner.
If you've been following this industry as long as I have, you know how ludicrous that number is.
We're talking about a company that received 5,700 commercial orders worth $495 billion in the first quarter of 2015 alone.
You can see why it wasn't a surprise to me when Boeing completely skyrocketed past the Street's expectation and left the Paris Air Show with over 335 orders, worth around $50.6 billion.
I give a lot of attention to aircraft orders and events like the Paris Air Show for one reason. The aviation industry is reliant on new and innovative pieces of high tech.
We're talking everything from sensors and semiconductors, digital radars, Wi-Fi connectivity, advanced cockpit electronics, and more.
Despite falling fuel costs, global airlines are rapidly replacing their aging fleets with more fuel-efficient, tech-laden crafts.
And the skies are busier than ever. The International Air Transport Association (IATA) says that in March, global air passenger traffic rose 7.4% compared to the same month a year ago.
Not to mention Boeing recently updated its 20-year forecast to show a 3.5% increase from last year. The company is now projecting that over the next 20 years, global demand will reach 38,000 aircrafts, making it worth a combined $5.6 trillion.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.