Diesel and Donuts, Well Maybe Not Donuts
The first financial indicator I shared was the TED Spread. http://tinyurl.com/3nj654r That indicator gives me a picture of the Credit Markets. I want to share with you what I look at to give me an idea of where consumer spending is headed .
Why is this important to a RE Investor? I use it in two ways. First, it helps me stay on my yearly budget. I can change where and how I spend my business dollars. Two, it helps me keep my marketing plan on track.
The UCLA Anderson Forecast and Ceridian Corp Index for Real-Time domestic Diesel Fuel Consumption. This index will give you an idea of over-the-road domestic cargo movement. Hint; Retail Sales.
The second indicator I use is what I call the Fed-x UPS Spread. UPS is usually the shipper of choice for On-Line Purchases. Fed-X gives me an idea of product movement from overseas and domestic sources. Both of these companies are well managed and know how to make a buck. Negative numbers only point to one thing to me. Folks ain’t buying as much.
How often do I look at these three items? The UCLA report comes out monthly. I usually look at Fed-X UPS Spread once a week. You don’t have to be a financial guru to use and understand these indicators. If domestic diesel consumption is down goods aren’t being shipped. If Fed-X and UPS stocks are both in negative territory goods aren’t being shipped. Yes, these indicators should pick up during the Holidays. If they don’t well….
Here’s my big fat disclaimer. All the above is just my opinion. I don’t own any Fed-X or UPS Stock. I’m not endorsing their stock. I’m not trying to sell their stock. I’m not telling you to buy their stock. I’m not an investment advisor or an attorney. Did I leave anything out???
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