Despite the fact that the Federal Reserve was out yesterday providing their GDP forecasts for 2019 and 2020, 2.2% and 2% respectively, the Cass Freight Index report says otherwise. In their August report, the Cass Freight Index, which is seen by many analysts as a reliable leading indicator, is stating that given both lower freight volumes and prices, GDP is likely to turn negative by the end of 2019. August marks the ninth month in a row of negative YoY growth for the index. Citing the global slowdown and the ongoing trade war between the US and China, the report notes that the headwinds abroad are making their way to the US. Consistent with what we discuss here on a daily basis at The Kapital News, the transportation sector is a simple, yet reliable leading indicator – which is why we highlight the price action of the Dow Jones Transportation Average. The Cass Freight Index, in agreement with the DJT, is showing a disconnect/divergence between the major indexes and the broader economy. The question remains, will the transports play a game of “catch-up” and make or near all-time highs, or will the major indexes reverse course, which could make for a sizable correction? It’s anyone’s guess, but the major indexes are approaching strong resistance levels as they near all-time highs. In other news, the President is mired in another political/legal situation where a whistleblower appears to be claiming that the President made very concerning comments to a foreign leader. Facts are clearly lacking as this is a new story and pertains to perhaps highly classified information, but what the reports are claiming is that the foreign country in question is, Ukraine. This story is sure to be the focus of the Democrats for some time and will lead to more divisiveness until their is a conclusion – and who knows when that will be? We just want the truth to be known and for justice to be served, regardless of the parties involved. Stay diversified, stay vigilant, and stay with The Kapital News. #Recession #Economy #Justice #Truth #EndTheFed #Politics #WakeUpAmerica #Peace