The stock price for FedEx fell last week and is now near 52 week lows (hit the low on 11/16/2007). Why should I care that one companies stock fell? Because FedEx is a major shipper of goods and I believe shipping companies tell us how the US economy is fairing overall. FedEx's profits are highly cyclical; they depend on the strength of the U.S. and world economies because economic health is a key determinant of package volumes. Package volumes and economic strength are so tightly correlated that economists will study package volume data from companies like FedEx as an indicator of whether economic activity is slowing or heating up. - Wikinvest FedEx announced last week that it was lowering its profit forecast due to "rising fuel costs and weak freight demand".
Just another piece of news to fuel my recession obsession...Labels: Recession Obsession |
So here is the question:
If we suspect that a recession is coming - and there is evidence that the dollar will continue to fall (especially w/ OPEC thinking about dumping dollars in favor of EURO - just a matter of time), then what can we do pre-emptively as finance conscious folk?
Invest in foreign vehicles?
Buy Gold?
open savings accounts in europe?
any advice/thoughts out there?