The prediction of a new era for truckload stocks is based, in part, on the assumption that these equities have been so thoroughly battered and bludgeoned that their prices have nowhere to go but up. As with many other investment firms, Bear Stearns puts together industry indexes. Based on this low takeoff point, Wolfe expects the carriers on his index and other good truckload companies as well to outperform the stock market as a whole, especially in the second half of 2001. You have very easy comparisons. You re coming off of two bad years in a row and expectations are low.
Stocks work on expectations, and they look into the future.
For the full story, see the Dec. 11 print edition of Transport Topics. Subscribe today .