FedEx Predicts a Global Economic Downturn

469 views

Published on

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.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
469
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

FedEx Predicts a Global Economic Downturn

  1. 1. By www.ProfitableInvestingTips.com
  2. 2. Stocks have retreated frommultiyear highs and FedEx predicts a global economic downturn.By www.ProfitableInvestingTips.com
  3. 3. The stock market highs were froman expected economic boost fromFederal Reserve bond purchases.By www.ProfitableInvestingTips.com
  4. 4. Some of the almost immediateretreat from these highs is certainly from profit taking by short term traders.By www.ProfitableInvestingTips.com
  5. 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. 6. The assumption by FedEx and others is that high fuel prices andslowing trade will function as a drag on business well into 2013.By www.ProfitableInvestingTips.com
  7. 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. 8. The US will likely see a boost to the housing market and moreinvestment in home industry based on how the Fed stimulus plan is expected to operate.By www.ProfitableInvestingTips.com
  9. 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. 10. That is another problem for China and other Asian export driveneconomies as exports from the USA will become more competitive.By www.ProfitableInvestingTips.com
  11. 11. Europe and AsiaBy www.ProfitableInvestingTips.com
  12. 12. Although an out and out Greekfinancial collapse has not happened the debt problem in Europe seems endless.By www.ProfitableInvestingTips.com
  13. 13. The eventual solution may be the same as the USA is applying, printmoney to stimulate industry, pay offdebts, and devalue the currency to make the economy more competitive.By www.ProfitableInvestingTips.com
  14. 14. In the meantime the Chineseeconomy has slowed, the Chinesehousing bubble is still a threat, and economies across Asia are feeling the pinch of fewer exports to Europe.By www.ProfitableInvestingTips.com
  15. 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. 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. 17. A Unique View of World Markets By www.ProfitableInvestingTips.com
  18. 18. A company such as FedEx doesbusiness 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. 19. Thus, when Fedex predicts a global downturn investors are wise to listen.By www.ProfitableInvestingTips.com
  20. 20. To a degree FedEx profits have positive correlation with global business.By www.ProfitableInvestingTips.com
  21. 21. Something that FedEx and industries in the world have in common is paying energy costs.By www.ProfitableInvestingTips.com
  22. 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 becauseof expanding business coming out the depths of the recession.By www.ProfitableInvestingTips.com
  23. 23. And part has been to so called Irantax, the price that has been built in to crude oil prices due to reducedexports from Iran and the threat ofIran shutting the Straits of HormuzBy www.ProfitableInvestingTips.com
  24. 24. in response to trade sanctions orthe threat of war in that part of the world due to Iran’s nuclear ambitions.By www.ProfitableInvestingTips.com
  25. 25. When FedEx predicts a globaleconomic downturn investors are wise to check their portfolios anddo a little fundamental analysis to see which stocks are likely to fall and which are likely to rise ifeconomic conditions worsen going into 2013.By www.ProfitableInvestingTips.com
  26. 26. For more insights and usefulinformation about investments and investing, visitwww.ProfitableInvestingTips.com.

×