In order to understand the behaviour of logistics stocks we must look at the movements of the transport sector (DJT and NASDAQ Transport) vs the major indices and GDP.
Looking at the components of DJT and NASDAQ Transport, these two indices are not completely representative of the logistics sector. They are nevertheless dependant on the volume of trade and hence related to GDP performance.
Comparing GDP performance with the performance of the indices and sectors we deduce three things:
1) DJT and Nasdaq Transport move in tandem with the major indices NYSE, NASDAQ, DAX, FTSE and Nikkei and are therefore cyclical.
2) The stock market, and sectors, are between two to four quarters ahead of the economic cycle.
3) The performance of the SSE appears to be unrelated to any other market and the Chinese economy.
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