Why Federal Express Comments were Taken so Negative …. Tentacles …

There are bell weather companies that have enough respect, when they speak the ripple effects are great. Last week Federal Express announced very negative earnings expectations and Wall Street took note.

Why Federal Express Caused Such Waves

Long time followers know we rarely speak of individual companies, but in this case wanted to explain the cause and effects of not only Federal Express but Capital Market movement post comments as well.

Here is what happened:

• Federal Express cut earnings expectations by almost half
• The new CEO says he expects “Worldwide Recession”
• Cites dramatic slowdown near the end of the quarter

With tentacles across the globe and such strong words by the CEO, fear of contagion spread into markets.

Have a Great “Fed Ex” Cause and Effects Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

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