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

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

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!)

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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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