Remember a few weeks ago, when the Baltic Dry Index was on the ropes?
Well, it's off the ropes - and in complete freefall. Support has NOT held for the BDI, a favorite leading indicator of many investors. And one, might I add, that has performed quite well since the equity markets topped in 2007 (in '09, the BDI turned up 3 months before stocks).
The short term prediction appears to be PAIN, as shipping rates plummet. Apparently not as much to ship as the global economy heads for a wicked "double dip"...
click to enlarge
The Baltic Dry Index is in free fall...this is probably not a good sign for the global economy.