Rebel Capitalist: This Economic Bellwether Gives Dire Warning
Investors have a nearly infinite amount of data to look at to determine the strength of the economy. However, some data points are more valuable than others. Most data is lagging, coming out months after it could be of strong use.
Some corporate data can give a timely sense of how the economy is faring. This kind of data can show if customers continue to spend, or have started to cut back on their spending.
One of the key companies to watch for the economy is FedEx (FDX). The delivery firm is a bellwether for the economy. Why? Because its total sales and deliveries point to the total amount of activity in the economy.
Recently, FedEx has shown some weakness. Shares dropped 15% in a day on their latest earnings.
Why? The company reports that demand for speedy delivery has declined.
In other words, customers have a lower need for overnight delivery services on anything from signed paperwork to physical shipments. That could be a sign of a slowing economy.
Meanwhile, the stock market trades at all-time highs. But there are signs that the economy is not running on all cylinders. And that investors need to be cautious on their investments, looking for only the best opportunities right now.
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