Friday , 20 October 2017


Latest Baltic Dry Index: NO Global Recession Coming

The Baltic Dry Index is often cited by economists as a bellwether of global economic activity. The index, which measures the price of transporting raw materials by sea, has now risen by more than 21% from its recent lows and is also up 16% in the last week alone …calling into question the advent of a global recession. [Let us explain.] Words: 292

So says Bespoke Investment Group (www.bespokeinvest.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([  ]), abridged (…) and reformatted below  for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.  The article  goes  on to say:

The index, however, is not immune from critics who argue that the index is extremely volatile and has often provided false alarms on both the upside and downside.

That being said, in an environment where investors are beginning to price in a global recession, the increase in the Baltic Dry Index calls that view into question. 

*http://www.bespokeinvest.com/thinkbig/2011/8/22/baltic-dry-index-up-16-in-a-week.html

Related Articles:

1.  The Baltic Dry Index: Why You Should Use It and How to Do So

The Baltic Dry Index is, in my opinion, the best leading economic indicator to follow when the media is telling us the economy is looking great one week and then predicting a double dip recession the next. Let me explain. Words: 933

Editor’s Note:

  • The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.

 

 

3 comments

  1. look at the 5 year chart at bloomberg!…who is this guy writing the article?

  2. Load of BS! Index is still trading down 87% from all time high so as to render the index meaningless!

    • Imagine the Dow went from 14000 to 1800 and now it goes up 16%. Yeah, Happy days are here again!