Maybe any sector gets interesting after a while if investors follow it closely enough. It was definitely interesting to watch the trends in railcar traffic and Wall Street perception for railroads this year. All in all, this was quite a solid year for the industry and the "average" railroad not only beat the market, but beat it by a healthy margin. Although the linkage between railroads and ducks is not exactly obvious on first blush, 2011 showed that they have at least one thing in common; things may look consistent on the surface, but there can be a lot of turbulence below the waterline.
Rail traffic went on a noticeable skid from the early spring and into the summer, feeding a lot of fears that industrial growth had stagnated in the U.S. and the economy was at risk of slipping back into recession. So far, though, it looks like this slide was just part of the seasonal pattern in traffic that has held true for many years now. Not only has rail traffic rebounded nicely, but intermodal activity continues to accelerate and pricing has been solid. (For related reading, see A Primer On The Railroad Sector.)
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