What’s the Baltic Dry Index telling us now?
Saw an interesting tweet from over the weekend on the (extreme) seems to be giving us.
Have a in Maoxian’s tweet. I wonder if any of us have ever seen such a devastating decline (-94% drop), followed by such an amazingly quick and robust (BDI is up 427% since its Dec. low) recovery move?
Regulars here at Finance Trends may recall our past discussions of the and its increased use as a gauge of global economic activity. So what is the BDI be telling us now?
Our March 23rd post (previous BDI update) focused on the relationship between (then) recent moves in the .
At that time, copper prices were steadily moving higher, despite analysts’ claims that the move up was not supported by “real demand”; the move up was supposed to be driven more by a temporary restocking of strategic inventories by the Chinese. I wondered, at that time, if copper would soon run out of steam and follow the dip then underway in the BDI.
As it turns out, both copper and the Baltic Dry Index since that time. Take a look at this updated chart (courtesy of ) below.
So what is the recent strength in Dr. Copper and the Baltic Dry Index telling us now?
Have, as , the central bankers let loose an inflationary tidal wave? Or are we also starting to see some pick up in base metals prices and dry bulk shipping activity as and the dollar declines?
Related articles and posts:
1. – Bloomberg.
2. – The Australian.
3. – Helenic Shipping News.
4. – Finance Trends.
5. – Finance Trends.