Sunday, 25 September 2011

Baltic Dry Index breaking out

The Baltic Dry Index provides an assessment of the price of moving the major raw materials by sea and is known to be one of the purest form of economic indicator in the sense that only member companies who have actual cargo/ships are allowed to trade in this index with no speculative players involved at all.

Strangely, in these recent weeks, the Baltic Dry Index is breaking out. There can only be one reason; obviously there is a pickup in shipping of materials and thus more demand for such shipping activity. Is this not good news for the economy? Who knows? We could even be seeing the change in trend here as the battered economy picks itself up.

Despite all the gloom and doom, the index is churning another different storyline.




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