Are Transports Signaling Good Times Ahead?

Before you go, we thought you'd like these...
Before you go close icon

The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Brenton Flynn discusses topics around the investing world.

May was a horrible month for investors, with the Dow Jones Industrial Average and the S&P 500 both declining more than 6%. While investors watched the Greek situation on a daily basis, worried about decelerating growth in China, and contemplated the impact of a slowing domestic jobs environment, one key economic indicator was actually improving. That measure is relative strength, particularly the Dow Jones Transportation Index relative to the broader U.S. market. In the following video, Brenton dives into the measure and examines why it might suggest better days ahead for investors.

The global economy will recover; there's no doubt about it. But for investors who are wary about putting all their chips in one basket, why not pick three perfect ETFs to capitalize on multiple recovering markets? Our favorites span technology, emerging markets, and energy. If you'd like to uncover this diversified basket of winners, enjoy a copy of our special free report: "3 ETFs Set to Soar During the Recovery." The report is free today but won't be forever, so check out your copy today by clicking here. Enjoy, and Fool on!

At the time this article was published Brenton Flynnhas no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendFedEx. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners