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July 20, 2019 | Transport Weakness Confirms Cyclical Downturn Underway

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

As I pointed out in Transports leading the stock market and economy lower, the Dow Transport Stock Index has not confirmed strength in the broad market indices since December 24th. In fact, the transportation index is at the same level today it as it was in December 2017.

Large cap companies can fabricate earnings growth through share buybacks for a while, but that does not solve weak sales.  Less sales mean less shipping, and less shipping historically correlates with disappointing economic growth in the months ahead.

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July 20th, 2019

Posted In: Juggling Dynamite

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