Over 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?
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E.J. Smith - Your Survival Guy
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