Sometimes companies can act as a canary in the coal mine for the overall economy. For example, analysts might look at statistics like the Baltic Dry Index, which is a measure of shipping prices. If prices are high, that means demand is high, which indicates a strong economy. On the other hand, if freight costs are low because there is excess capacity, it could indicate a slowdown. These things can provide clues to help investors guide portfolio decisions like whether it is time to rotate into defensive stocks or cyclicals.
The logistics space is another bellwether for the overall economy, and Prologis (NYSE: PLD) is the leading logistics real estate investment trust (REIT). What are Prologis' results saying about the overall economy?
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For further details see:
Is Prologis Flying a Red Flag for the Economy?