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Investors are continuously searching for a leading indicator that would give good entry and exit signals and prevent investors from losing money. Today, it would be foolish for someone to claim that a reliable indicator exists. Even the famous Merton and Scholes, after the collapse of LTCM, agreed that there is no such crystal ball, especially given the current market. However, investors can rely on few financial indicators to measure the state of the global economy the same way lights at the cross road gives you the signal to stop or keep on driving.

Two indices followed by most investors are the London Inter Bank Offered Rate (LIBOR) and the Baltic Dry Index (BDY). This article will take a look at the Baltic Dry Index since it is a bit more straightforward and easily digestible.

Eagle Bulk Shipping Inc. (EGLE) closed at $29.40, after a fall of almost -10% on Tuesday. On what news exactly? I can’t seem to find anything real. In fact, based on Tuesday’s trade data, both imports and exports to the United States are at record highs. Which means shipping.

Also on Tuesday, Navios Maritime Holdings Inc. (NM) dropped 5%. Our March 8 Hot Stock of the Week, dry goods shipper China Cosco Holdings (CICOF.PK), is also still trading in our buying range at $2.80. All these companies are not just profitable… expanding… and fully equipped to turn global commerce into their own personal goldmines. Madness, if you ask me…

Dry bulk shipping has come into its own in the past decade – spurred primarily by demand from China.