Young Research’s Moving the Goods Index is sending a signal of caution on the economy. Our Moving the Goods Index is a modified market-capitalization weighted index of non-airline transportation companies. Transportation stocks are often a leading indicator of economic momentum.
The chart below shows that our Moving the Goods Index is rolling over relative to the broader S&P 500. While the relative underperformance of the transports may be an industry specific issue, it could be signaling something more ominous. Savvy investors should take it as a sign of caution.