Rail Traffic Says The Economy Is Growing, So Stop Worrying! (CSX, UNP, NSC)

Rail traffic rose to 692,500 rail cars last week, making it the best week in nearly two years.

As indicated by this chart, rail traffic slipped during Labor Day, but has rebounded sharply as I had expected it would.

As rail traffic has continued to increase, the rail stocks, in particular CSX (NYSE: CSX), Norfolk Southern Corp. (NYSE: NSC) and Union Pacific Corporation (NYSE: UNP) have seen noticeable and meaningful appreciation in share prices.

CSX just raised its dividend 8% earlier in the week, indicating it sees better times ahead. Companies don't raise their outlays of cash in weak economic conditions, thus implying the economy is better than expected.

Stop listening to the mainstream media, with their endless doomsday scenarios and miserable bear guests.

When was the last someone like Nouriel Roubini, or David Rosenberg was right? Just because you called the downturn doesn't give you a free pass when you've been consistently wrong now for the past 18 months.

The prices of the railroad stocks say these gentlmen are wrong, and this data proves it.

Maybe it's time to go back to teaching Nouriel instead of speaking on TV. And David, you've been so bearish and miserable you can't see the sun shining from that far deep in the cave. Maybe it's time you looked at the data objectively, instead of massaging it to prove your wrong thesis.

Disclosure: long CSX