Investment analysts debate on TV about the timing of the next recession. The Dow is on a roller coaster ride, and the pundits keep using the word "unprecedented" to describe each day's results.
Yes, it's a volatile market. But unprecedented? Not so much.
Donald Broughton shares his thoughts about "Opportunities and Threats in the New Freight Economy" at the 2018 DAT User Conference.
Consider this: Sentiment is frothy heading into the new year, and those market watchers are looking for reasons to worry:
- Uncertainty from new trade agreements and the threat of tariffs with major trading partners
- Concerns about decelerating rates of growth in other large economies
- Large swings in currency valuation and currency devaluations that threaten the political leadership of other countries
- A dramatic decline in the price of crude oil
- Increasing potential for the impeachment of the US President, who is mired in controversy and scandal
- Innovative technologies are threatening to disrupt the status quo and completely upend major industry players
- Freight volumes continue to grow, yet market decides to sell cyclically sensitive stocks, especially transports
Sound familiar? That's a summary of market conditions...in 1998.
While today's situation is eerily similar, the underlying volume of goods flow continues to be a reliable indicator. Keep your eye on freight volumes. As they move, so goes the economy.
Watch Broughton discuss the current economic climate on CNBC.