Thursday, November 26, 2015

Chaos In The Middle East, Collapse In The Baltic Dry Index And The War In Gold

"Question: Hi Bill: As you certainly know the BDI, the Baltic Dry Index has reached the low of 498 as compared to 12000 reached in 2008, a 96% decline. How much importance do you give to that index and what kind of repercussions do you expect in the US and Global stock market, if any? Thank you
KWN Fleckenstein I 11:24:2015
Answer from Fleck:  I don’t tend to pay attention to them, as there are other ways to get a read on economic activity and the freight indices are impacted by more than just “trade” as I understand it (e.g., the increasing size of new ships), so they aren’t as great of a barometer as one might expect them to be. Still, I think they do tell you that trade is somewhat weak.”

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