In order to identify early leadership investors should seek out the important bellwethers.
A market bellwether can be a leader in any given sector be it commodities, interest rates or global equity markets.
The term is derived from the Middle English Bellwether - which refers to the practice of placing a bell around the neck of a castrated ram - (a wether) in order that this animal might lead its flock of sheep.
UPS is a transportation bellwether because it is very economy sensitive.
We need the leadership of UPS - and we need it now!
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2 comments:
In your experience, do the leaders also lead on the way down?
GT Response
Hello Canadian Money
Good question - yes they do lead on the way down - if you look at a weekly chart of UPS you will see the swing-failure of mid 2006 when the shares failed to break above the old 2005 high - a bad omen for the US economy
Bill Carrigan
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