The airline industry is a good example of where the micro trumps the macro. Stocks may be fully valued in general, but that has little to no impact on the leverage no being generated by airline companies. Planes are full, fees are rocketing higher, and there is less competition. The story just keeps getting better and while stocks in the airline industry have appreciated greatly there is more meat on the bone.
Case in point is United Continental (UAL). Analysts expect the company to grow profits by 66% in 2014. At current prices shares trade for seven times 2014 estimated earnings. Now that’s a bargain Warren Buffett would find attractive. You should too, no matter the current valuation of the overall market