It has been quite a while since we have looked at the Baltic Dry Index. There you have it. The index is stuck in a clear downtrend and is once again pushing towards multi-year lows. Quite an opposite take on the “Economy Is Great & Getting Better” view perpetuated by most mainstream economists and media outlets.
The index is down 75% in a little over a year and is now hitting levels unseen since 1986. Inflation adjusted, it is now much lower. In other words, if this does not suggest a massive global slow down while piercing the bubble of “perceived” economic prosperity, I don’t know what will.
And whle we all know that global trade is slowing down, I think there is a bigger story here. That is, the stock market must catch up to this economic reality. And as of now it has quite a bit of ground to cover to the downside to accomplish just that.
