While the price of gas continues to rise, this hasn’t slowed down the transportation sector.  The exchange traded fund, iShares Dow Jones Transportation (IYT) is up 11% year-to-date.  Carl Delfeld explains that the trade deficit is actually helping transportation.  All those goods that are coming into the U.S. (and moving all over the world) need to get there somehow.  IYT holdings include those companies that move goods around, Fed Ex (FDX), UPS (UPS), Ryder (R) and Union Pacific (UNP) are just a few.

These companies are doing well as they work to help companies cut costs through consulting and logistic services.  Railroads work to move imports from the ports to land locked distribution centers.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.