Excerpt from The Financial Times quoting DataTrek’s Nick Colas:
…. ” Those who think that the underperformance of the Transports could be the canary in the coal mine signalling an economic slowdown are not deterred, however.
“FedEx does skew the reading on the Transports index, but does not wash it out entirely,” said Nicholas Colas, co-founder of DataTrek.
It is particularly notable that the transport index is falling sharply even as oil prices have been going down, something that should be giving transport stocks a lift.
“Energy is typically a big part of their cost structure — they should be doing better than they are,” Mr Colas said. “The Transport index performance mirrors what other financial markets like the flattening of the Treasury yield curve are telling you: slower growth. It is just one more brick in the wall”….
Read the full article here in the Financial Times!