Transport shares struggle

An analysis of the transport sector shows potential US recession coming up

Back in March 2000 the S&P 500 peaked and then halved over the next two years.

The peak wasn’t exceeded until 11 years later.

However, a few months before, there were clear signs of economic trouble brewing.

One warning was from the US transportation sector stocks, which declined significantly before the stock market peaked and then crashed.

A similar pattern occurred in January 1973 when the market peaked and then took 10 years to revisit that peak.

Today, just like in 1973 and 2000, the transportation sector of the US stock exchange seems to be flashing warning signals.

The US stock markets are currently hitting new highs daily, however the transportation sector is getting decimated, and no-one can really explain why.

It seems to me that on the ground all is not pretty.

This theory is called the dow theory, and it suggests that if the transportation sector doesn’t hit new highs along with the rest of the sharemarket, then a sharemarket crash could be close.

Previously, a downward trend in transportation has taken up to one year to play out, so there may still be a bit of time yet.

My bet (not financial advice) is Gold and silver at the moment, they are both up 20% in recent months and will do well in a recession and with all the continued inflation