Sunday, September 25, 2011

FedEx as a transportation barometer

Transportation barometers have often been used by economists to forecast the stock market and the general economy. The transportation index used to followed very closely. Warren Buffett used railroad traffic as a good activity barometer. Those in commodities will use shipping lease rates as a good clue of international trade. 

FedEx has trimmed its forecast for the next 12 months and that may be a very good indicator that we may be headed for a slowdown.


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