Transportation stocks are often looked to as indicators for the health of the US (and global) economy. Companies like FedEx (FDX) and UPS (UPS) are viewed as market bellwethers given their integration into the global economy. We look at what recent reports on rail volumes and the Baltic Dry Index tell us about the state of the economy. Today’s screencast is a great real-time example of confirmation bias in action.
Posts mentioned in the above screencast:
The Baltic Dry Index is up 36% in two weeks. (Bloomberg)
Remember when everyone was screaming about the $BDI? (StockTwits)
Transport stocks are lagging. (MarketBeat)