By www.ProfitableInvestingTips.com
FedEx Predicts a Global Economic Downturn
Stocks have retreated from multiyear highs and FedEx predicts a global economic downturn. The stock market highs were from an expected economic boost from Federal Reserve bond purchases. Some of the almost immediate retreat from these highs is certainly from profit taking by short term traders. However, the state of the global economy is far from healthy. Witness that FedEx predicts a global economic downturn based on its own projections in the shipping business. The assumption by FedEx and others is that high fuel prices and slowing trade will function as a drag on business well into 2013. Although the Fed stimulus plan may help the USA it will not help Chinese exports to debt ridden Europe. The US will likely see a boost to the housing market and more investment in home industry based on how the Fed stimulus plan is expected to operate. Over the long haul the fact that the US is printing money to get out of the recession for good will likely devalue the US dollar. That is another problem for China and other Asian export driven economies as exports from the USA will become more competitive.
Europe and Asia
Although an out and out Greek financial collapse has not happened the debt problem in Europe seems endless. The eventual solution may be the same as the USA is applying, print money to stimulate industry, pay off debts, and devalue the currency to make the economy more competitive. In the meantime the Chinese economy has slowed, the Chinese housing bubble is still a threat, and economies across Asia are feeling the pinch of fewer exports to Europe. A company like FedEx predicts a global economic downturn based on less business and their unique view of international shipments. As economies shrink companies are reverting to sea routes instead of shipping by air which directly affects the bottom line for companies like UPS, DHL, and FedEx.
A Unique View of World Markets
A company such as FedEx does business in the four corners of the globe. As such it gets a clear and early view of what is going on everywhere. Thus, when Fedex predicts a global downturn investors are wise to listen. To a degree FedEx profits have positive correlation with global business. Something that FedEx and industries in the world have in common is paying energy costs. The rise in fuel prices over the last year or more has been a drag on the economy. Part of the rise has been because of expanding business coming out the depths of the recession. And part has been to so called Iran tax, the price that has been built in to crude oil prices due to reduced exports from Iran and the threat of Iran shutting the Straits of Hormuz in response to trade sanctions or the threat of war in that part of the world due to Iran’s nuclear ambitions.
2. Stocks have retreated from
multiyear highs and FedEx predicts
a global economic downturn.
By www.ProfitableInvestingTips.com
3. The stock market highs were from
an expected economic boost from
Federal Reserve bond purchases.
By www.ProfitableInvestingTips.com
4. Some of the almost immediate
retreat from these highs is certainly
from profit taking by short term
traders.
By www.ProfitableInvestingTips.com
5. However, the state of the global
economy is far from healthy.
Witness that FedEx predicts a global
economic downturn based on its
own projections in the shipping
business.
By www.ProfitableInvestingTips.com
6. The assumption by FedEx and
others is that high fuel prices and
slowing trade will function as a drag
on business well into 2013.
By www.ProfitableInvestingTips.com
7. Although the Fed stimulus plan may
help the USA it will not help
Chinese exports to debt ridden
Europe.
By www.ProfitableInvestingTips.com
8. The US will likely see a boost to the
housing market and more
investment in home industry based
on how the Fed stimulus plan is
expected to operate.
By www.ProfitableInvestingTips.com
9. Over the long haul the fact that the
US is printing money to get out of
the recession for good will likely
devalue the US dollar.
By www.ProfitableInvestingTips.com
10. That is another problem for China
and other Asian export driven
economies as exports from the USA
will become more competitive.
By www.ProfitableInvestingTips.com
12. Although an out and out Greek
financial collapse has not happened
the debt problem in Europe seems
endless.
By www.ProfitableInvestingTips.com
13. The eventual solution may be the
same as the USA is applying, print
money to stimulate industry, pay off
debts, and devalue the currency to
make the economy more
competitive.
By www.ProfitableInvestingTips.com
14. In the meantime the Chinese
economy has slowed, the Chinese
housing bubble is still a threat, and
economies across Asia are feeling
the pinch of fewer exports to
Europe.
By www.ProfitableInvestingTips.com
15. A company like FedEx predicts a
global economic downturn based
on less business and their unique
view of international shipments.
By www.ProfitableInvestingTips.com
16. As economies shrink companies are
reverting to sea routes instead of
shipping by air which directly
affects the bottom line for
companies like UPS, DHL, and
FedEx.
By www.ProfitableInvestingTips.com
17. A Unique View of World
Markets
By www.ProfitableInvestingTips.com
18. A company such as FedEx does
business in the four corners of the
globe.
As such it gets a clear and early
view of what is going on
everywhere.
By www.ProfitableInvestingTips.com
19. Thus, when Fedex predicts a global
downturn investors are wise to
listen.
By www.ProfitableInvestingTips.com
20. To a degree FedEx profits have
positive correlation with global
business.
By www.ProfitableInvestingTips.com
21. Something that FedEx and
industries in the world have in
common is paying energy costs.
By www.ProfitableInvestingTips.com
22. The rise in fuel prices over the last
year or more has been a drag on
the economy.
Part of the rise has been because
of expanding business coming out
the depths of the recession.
By www.ProfitableInvestingTips.com
23. And part has been to so called Iran
tax, the price that has been built in
to crude oil prices due to reduced
exports from Iran and the threat of
Iran shutting the Straits of Hormuz
By www.ProfitableInvestingTips.com
24. in response to trade sanctions or
the threat of war in that part of the
world due to Iran’s nuclear
ambitions.
By www.ProfitableInvestingTips.com
25. When FedEx predicts a global
economic downturn investors are
wise to check their portfolios and
do a little fundamental analysis to
see which stocks are likely to fall
and which are likely to rise if
economic conditions worsen going
into 2013.
By www.ProfitableInvestingTips.com
26. For more insights and useful
information about investments and
investing, visit
www.ProfitableInvestingTips.com.
