Sunday, November 22nd, 2009

The Transport Bull Market: It’s Official. It’s Amazing

May 20th, 2008 | By Brian Hunt | Category: Stock Market Investing

Warren Buffett knew what he was doing when he bought railroads.

Last year, the world’s best investor bought stakes in several U.S. railroads as a play on their near-monopoly power in transportation.

Like all transport companies, railroad shares suffered during the credit crisis. Now… as things go from “bad to less bad” for the U.S. economy, railroad stocks have powered a huge rally in the Dow Jones Transportation Average. We pointed to this rally last week and said things aren’t as bad as most think.

Yesterday, the transports said things aren’t just “not bad,” they’re getting pretty good. The “transports” reached an all-time high. This index depends on demand for goods and commodities shipped by rail, road, air, and water. This all-time high tells us business is booming.

Dow Jones Transportation Average

 

Source: He Transport Bull Market: It’s Official. It’s Amazing


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By Brian Hunt

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Brian Hunt is managing editor of Daily Wealth.

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The DailyWealth mission is to show you how to avoid risky investment, and how to avoid what the average investor is doing. We believe that you can make a lot of money and do it safely by simply doing the opposite of what is most popular.

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