Yesterday we wrote about the big plunge in the Baltic Dry Index, and advised people not to worry too much since the Baltic Dry is such a lousy economic indicator.
Lately we’ve been getting a lot of concerned emails about this chart.
[credit provider=”blog.sina.com.cn” url=”http://blog.sina.com.cn/chinatop10″] Yesterday, we discussed how the Baltic Dry Index (BDIY), a benchmark for shipping rates, isn’t a perfect proxy for the macroeconomy. Sure, shipping rates fluctuate with global trade activity. But the correlation between rates and the economy is distorted by supply and demand dynamics within the shipping […]
People can’t seem to decide if they’re concerned or just confused by the Baltic Dry Index (BDIY), which has plunged 53% since the beginning of the year.
Note: Headline changed back to author’s original
The Baltic Dry Index — which is just an index of shipping rates — has a lore about it for being a really good economic indicator.
Oh, that’s right. The measure of shipping rates has been rallying. No wonder nobody is talking about it.
It’s been a while since we heard anyone talk about the Baltic Dry Index, and it dawned on us that it must mean that it’s been higher.
The Baltic Dry Index, which measures shipping rates, has gotten a lot of attention lately because it’s plunging.
Probably because it’s been rising all month, and it’s usually one of these indices that folks only talk about when it’s going down. It’s still a bit below its highs in September, but given its unreliability as an indicator of, well, anything, it doesn’t matter too much.
Shocking, we know, but the Baltic Dry Index, hasn’t been getting as much attention on the way up, as it did during its big decline.
You don’t want to read too much into this. As we’ve pointed out before, the Baltic Dry Index — the measure of shipping rates — get over-read, and doesn’t usually mean what people think it does. Nonetheless, it’s way down of late, having been hammered yesterday, even while markets in […]