World GDP growth expectations are collapsing and trade volumes slowing, but if you prefer the happy talk coming from Washington that everything is getting better all the time--well, its your dime.
Wednesday, July 23, 2014
COTW: Baltic Dry Index
Never heard of it, and why is it important? Is it a new brand of gin? Allow US to explain. Market aficionados consider the Baltic Dry Bulk Index to be a reliable predictor (leading indicator) of global GDP, one reason being it is devoid of speculative content. People do not ordinarily charter freighters unless they have actual goods to move. It measures the cost of shipping major raw materials and grain (dry bulk) by sea all over the world in 23 shipping routes. The Index originated from a committee of merchants that met in Threadneedle Street, London at first in the coffeehouse of Virginia & Baltick. The Index is at its lowest point since 1986:
World GDP growth expectations are collapsing and trade volumes slowing, but if you prefer the happy talk coming from Washington that everything is getting better all the time--well, its your dime.
World GDP growth expectations are collapsing and trade volumes slowing, but if you prefer the happy talk coming from Washington that everything is getting better all the time--well, its your dime.