Logistics attractive area in transportation sector

The US transportation sector, at only 0.5% of the S&P 500 index, is not a high profile area for fund managers. It is perceived as a highly cyclical sector that is sensitive to the economy, which looks unattractive at a time when the Fed is raising interest rates. The sector has not performed well recently, though the volume of investment is reasonable, says Grant Cowley, North American fund manager at Perpetual. The largest chunk of the transportation sector is made up of airline firms. Airlines were de-regulated in the 1980s and there was a proliferation of new carriers, many of which ...