A favorite country song of mine is Willie Nelson's “On the Road Again”; it's been my theme song since the beginning of the year. Our second recovery scenario is on track, and so are our bullish targets of 1,565 before midyear and 1,665 by the end of the year for the S&P 500.
Truckers are on the road again - employment in transportation and warehousing has increased 88,000 over the past 12 months. Truck tonnage rose 6.5% year over year during January, the best gain in more than a year.
The “Dow Theory” paradigm remains bullish as both the Dow Jones Industrial Transportation and S&P 500 Transportation indexes are making record highs. The latest earnings and valuation metrics for the S&P 500 Transportation sector show forward revenues and earnings are at record highs.
Source: Ed Yardeni — Ed Yardeni is the president and chief investment strategist of Yardeni Research Inc., a provider of independent investment strategy and economics research for institutional investors.
