Feverpitched
Feverpitched
Money manager Didier Duret said Friday that the U.S. represents a “silver lining” amid slowing global economic growth because it has self-sufficiency in many key areas during a time of deglobalization.
“We are seeing a slow-burn recession based on deglobalization and the sovereignty of domestic demand,” the chairman of Omega Wealth Management told CNBC.
“It’s not an easy time and it’s not time for conventional asset management, he added.
As evidence for his view of a slowing economy, Duret pointed to recent comments from FedEx (FDX), which plunged 20% in Friday’s premarket trading after withdrawing its forecast and its CEO warning of “significantly worsened” economic trends.
Duret stated that the U.S. is better positioned to deal with a deglobalization trend “because of the autonomy it has on the energy side” and “the protection it has with the dollar it has related to the [Federal Reserve’s monetary] policy.
Prompted by the FDX news, many players in the transportation sector saw their shares fall in Friday’s premarket action. This included UPS (UPS), FDX’s most obvious competitor in the package-delivery space, which dropped about 6% before the opening bell.
The downdraft also captured names like XPO Logistics (XPO), which retreated around 6%, J.B. Hunt Transport Services (JBHT), which dropped around 3%, and GXO Logistics (GXO), which slipped around 2%.
For more on FDX, see why Macrotips Trading called the firm a “show-me story” even before the latest warning.
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