http://www.slate.com/id/2090303/ Obscure Economic Indicators: the Baltic Dry Index
measures the cost of shipping raw materials, which makes it a good
indicator of “economic growth and production.”
“After all, it doesn’t deal with container ships carrying
finished goods. It deals with the precursors to production: bulk
carriers carrying building materials, cement, grain, coal, and
iron. Unlike stock and bond markets, the BDI ‘is totally devoid of
speculative content,’ says Howard Simons, an economist and
columnist at TheStreet.com. People don’t book freighters unless
they have cargo to move.” 12:18
News Blog - Daily Brief - Portfolio.com (www.portfolio.com):
… But if American consumers and businesses are not buying goods, then China and other producers will throttle down their production. And that's what makes the Baltic dry index, created in 1985, so useful. As Daniel Grosswroteon Slate in 2003, the index "doesn't deal with container ships carrying finished goods. It deals with the precursors to production: bulk carriers carrying building materials, cement, grain, coal, and iron." …
Deus Ex Macchiato (deusexmacc.blogspot.com):
… Take another look at that. The BDI in 2007 hit roughly six times its 2002 level. The lag in the arb between the level of the BDI and the price of ships is of course reasonably long (about two yearsaccording to Slate), but still, this is an interesting trend. There has clearly been an awfully big spike in intercontinental trade and lots of new ships are coming on line. Now consider the most recent data from investmenttools.com: …
(www.travissteward.com):
… the major raw materials by sea. Taking in 40 shipping routes measured on a timecharter and voyage basis, the index covers supramax, panamax and capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain. A 2003articleby Slate.com calls this the ”best leading economic indicator you’ve never heard of”. So let’s take a look at it, shall we?: Read the rest of this entry » Posted in Economics | No Comments …
Forex Blog | Currency Research | Kathy Lien (www.kathylien.com):
… October 11, 2007 The Baltic Exchange’s Dry Freight Index was once termed, the “Best Economic Indicator You’ve Never Heard Of” by Daniel Gross. This index is closely followed by all Wall Street Insiders because it is a good indicator of economic growth and production. In a nutshell, the BDI reflects how much it costs to ship raw materials (like coal, iron ore, cement and …
The Taiwan-Romania axis - How the World Works - Salon.com (www.salon.com):
… But is that still true? Is the U.S. still the indispensable linchpin of the global economy? Or is the pin that connects to the U.S. locomotive to the global economy beginning to slip out of place -- a process economists like to call "decoupling."Fans of an economic indicatorcalled the "Baltic Dry Index" are beginning to wonder. The Baltic Dry Index provides a measure of shipping costs for dry bulk items around the world. If the index goes up, it is considered a sign that global demand for commodities like iron and steel …
CASTrader Blog (www.castrader.com):
… the third time in recent history that this short position has been so large. The other two times were early 2001, just before the S&P 500 tumbled 38%, and November 2004, after which the market rose some more and then corrected in early 2005. Thebest economic indicator you've never heard of(the Baltic Dry Index) via Kirk Report. From CXO Advisory Group: Which financial and economic variables best predict stock returns over the short, intermediate and long terms? Is "best" good enough for market timing? …
