11/17/07

The economy is slowing down

(Bloomberg) -- FedEx Corp., the No. 2 U.S. package- shipping company, cut its profit forecast for a second time because of rising fuel costs and weak freight demand. The shares fell the most in 16 months.

FedEx and other transportation companies are among the first affected by economic slowdowns or expansions, making them leading indicators. The National Retail Federation anticipates the smallest holiday-sales increase in five years.

Bad news for the economy. The economic slowdown is becoming a reality. This is very important to know when you select your investment strategy.

The stock sectors strong in an economic slowdown are much different from the sectors you should invest in a period of economic strength.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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