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According to the American Trucking Association, U.S. trucks carried 8.2% more freight tonnage last December than they did a year ago. That's pretty impressive, since we haven't seen strong gains like that on a sustained basis since 1997-98.
As the chart above suggests, this expansion of the physical side of the economy tracks well with the gains in inflation-adjusted equity prices. Nothing out of line these days, as compared to the excessive enthusiasm of the equity market in the late 1990s and the extreme pessimism towards the end of the last recession.
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On Wednesday, January 29, 2014, Volatility, ^VIX, rose, rewarding those invested in TVIX, VIXY,and VIXM as Global Financials, IXG, led World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, as well as US Small Caps, IWM, lower.
Transportation, XTN, traded 1.0% lower, as Trucking Companies, SWFT, ODFL, SAIA, PTSI, CNW, ABFS, UHAL, R, traded lower. Regional Airlines JBLU, ALK, ALGT, LUV, SKYW, as well as Major Airlines, DAL ,SAVE, UAL, traded strongly lower. Boeing, BA, plummeted, leading Aerospace and Defense, PPA, 1.4% lower; Reuters reports Boeing shares dip on cautious outlook despite fourth-quarter profit jump.
Ongoing disinvestment out of liberalism debt trade investments, and currency carry trade investments in Transportation Stocks, XTN, as well as Global Industrial Producers, FXR, such as Boeing, BA, will be active factors of economic deflation, turning down the metrics of economic reports such as those reported here in Scott's article.
A see saw destruction of credit and equity is underway destroying liberalism’s economic growth and prosperity and introducing authoritarianism’s economic deflation and austerity, as well as establishing an investment demand for gold.
Gold, GLD, rose 1.3%; its 5.0% rise over the last month reflects investors seeking a safe haven investment as well as establishes the beginning of the investment demand for gold. In the age of authoritarianism, gold and diktat will be the only sovereign and sustainable resources in a universe of destructionism.
If one follows the investment advise of Mr. Grannis, one will be utterly destitute.
Please consider dollar cost averaging into the physical possession of gold bullion.
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