Baltic Dry Index drops to 750 – what does this mean?

The best indicator of future economic activity could be the BDI – Baltic Dry Index! This index has dropped some 325 points in the past 65 days.

The BDI is dropping like a lead balloon. What could this mean for future economic activity globally? Could this index suggest that a major recession is soon coming? Could this index suggest that the growth which is touted by the media and the bulls for 2013 is an illusion? The next few weeks should help us discern what is happening with our global economy. This index is usually quite accurate in forecasting future economic activity.

http://www.taintedalpha.com/wp-content/uploads/2012/02/TaintedAlpha.com-Baltic-Dry-Index-06-02-2012.gif

http://www.wikinvest.com/stock/Baltic_Dry_Index_-_BDI_(BALDRY)?gclid=COaatsWJyaICFRATbAodCG8Jxw

Click on the above link and notice the drop in this crucial index. Unless some unusual event changes this index we could be heading for another recession in the coming months. A recession means that commodity prices could drop with all the other items where supplies are excessive (oil, etc.). Initially gold and silver may also drop with the markets but they should then reverse direction and head much higher. The emotions of the traders (and the markets) could be volatile in the coming weeks and months as economic conditions become more uncertain. Watch this index daily to discern what may develop. All seems ‘uncertain’ in today’s markets! The following links provides some insight!

http://gainspainscapital.com/

http://www.tampabay.com/multimedia/archive/00188/d4s_greatcrash08281_188539c.jpg

Watch the BDI in the coming weeks to discern the direction of the global markets. Personally, I sense that the markets could start to ‘crash’ in the coming weeks. The key word going forward is ‘volatility’ and ‘uncertainty’.

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