Baltic Dry Index Flat - A Sign That We've Reached Bottom?

This is a 10-year graph of the Baltic Dry index.

click to enlarge

And this is a short-term graph.

The Baltic Dry Index is down 93% from its all-time highs six months ago.

However, even though equity markets had been collapsing the past ten days, the Baltic Dry Index has been flat. Perhaps this is another signal that the market bottom for the year is in.

Comments

[Steven H.:]

It seems that the losening on letters of credit matters little now as the BDI is at 684 and headed lower. The question I guess everyone asks is what is the actual domestic content of China's exports. Though they are moving to lower domestic content of exports I don't think anyone has a handle on the topic. The domestic content issue would tell us how deep the Chinese slowdown will be. Intra Asian trade as measured by the handysize index is at an all time low.

2008 Dec 03 10:27 AM