The Baltic Dry Index is generally viewed as a leading indicator of global economic activity as dry bulk primarily consists of commodities such as building materials, coal, metallic ores and grain. My research, however, indicates that global manufacturing demand has very little to do with it but, rather, Chinese manufacturing demand – but not the actual level of manufacturing as measured by the CFLP Manufacturing PMI. [Let me explain.]
There has been an alarming development for the obscure, yet instructive Baltic Dry Index…[which] tracks the cost of shipping major raw materials (iron ore, coal, grain, cement, copper, sand and gravel, fertilizer and even plastic granules)…It is down 48.4% in the last month…[and] down 54.4% in the last three months. [Let me explain why and how to invest accordingly.] Words: 200
Economic inflection points are seldom obvious but if we take the time to analyze all the data, there are at least five indicators that suggest another U.S. recession is not imminent. [Take a look.] Words: 920
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
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
It is not inflation that is worrying big investors – though inflation may be the default response before this is all over – but deflation. Words: 638
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