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?
Latest posts by E.J. Smith (see all)
- Your Retirement Life: The International Tennis Hall of Fame - July 20, 2018
- Pensions are Still Hiding from the Truth - July 20, 2018
- The Problem With Mutual Funds Today - July 19, 2018