Your Survival Guy

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Transportation Index in a Bear Market

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FedEx_Trucks_AlaskaOver the last year, the Dow Jones Transportation index is down over 20 percent. The Transports index is loaded with companies that move goods across the country. It is a price weighted index meaning the highest priced stocks have the greatest influence on its direction. When I think of moving the goods, and how it relates to my family, I think of Christmas. This year, as in years past, Becky and I did a ton of our Christmas shopping online using Amazon Prime—with all those boxes our front hall felt like a fulfillment center.

The leading components of the Transportation index are FedEx Corp and UPS. They comprise 20% of the index. If the companies that move our gifts and goodies to and fro are in bear market territory, what does that imply for the rest of the economy?

[gview file=”http://youngresearch.com/wp-content/uploads/2016/01/Dow_Jones_Transportation_Average_Fact_Sheet.pdf” width=”100%” save=”1″]

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com