The Contrary Investing Report
Investing and Trading News, with a Contrarian, Sarcastic Twist!


Look Out Below, Global Economy! The Baltic Dry Index in Freefall

by Brett on July 8, 2010

Remember a few weeks ago, when the Baltic Dry Index was on the ropes?

Well, it’s off the ropes – and in complete freefall.  Support has NOT held for the BDI, a favorite leading indicator of many investors.  And one, might I add, that has performed quite well since the equity markets topped in 2007 (in ‘09, the BDI turned up 3 months before stocks).

The short term prediction appears to be PAIN, as shipping rates plummet.  Apparently not as much to ship as the global economy heads for a wicked “double dip”…

Baltic Dry Index Chart July 2010The Baltic Dry Index is in free fall…this is probably not a good sign for the global economy.

(Source: StockCharts.com)

Yet another reason to get OUT of stocks.  Or, if you’re feeling a bit frisky, you may want to consider shorting the S&P 500 (especially at the top of this mini-rally!)


Our Partners





Further Reading:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

More on this topic (What's this?)
What Is The Baltic Dry Index Telling Us (BDI)
Baltic Dry Index Collapse
Read more on Baltic Dry Index - BDI (BALDRY) at Wikinvest
  • http://www.cna-trainingclass.com/ cna training

    Wow this is a great resource.. I’m enjoying it.. good article

Previous post:

Next post: