Wikinvest Wire

What's up with the Baltic Dry Index?

Tuesday, May 06, 2008

A few months ago, wasn't nearly everyone so-o-o-o-o sure that the commodities bubble had burst (again!) when the Baltic Dry Index took a dive. Well, looky here!
This report from Bloomberg the other day notes the remarkable turnaround:

The Baltic Dry Index added 1.5 percent on May 2 to the highest since Dec. 19. The index, which tracks the price of transporting bulk commodities, has gained 7.8 percent this year.
And at Minyanville the increase was attributed to yachts (no, not really):
Interestingly, an article in today's Financial Times notes that demand for stuff may not be the sole explanation for the surge in the Baltic Dry Index.

According to the FT, slow growth in the supply of bulk carriers to the market and underinvestment in port facilities is also fueling the rise in the shipping index.
Also see:
If only the housing bubble could bring itself back to life with the regularity and the ferocity of the commodities bubble, the world would surely be a better place.

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6 comments:

Anonymous said...

obviously toppy... extremely overbought... never question my analysis plz

ta_guru

Aaron Krowne said...

Reminds me of "Dr. Copper's" behavior after supposedly pricing in a recession.

Nobody likes a commodities bull; let's face it. It really is a spectacular thing to behold; the reaction to commodities going up up up as consumers, retail investors, and politicians stand aghast. Unfortunately for them the problem will only be "solved" after years of adequate investment, not jawboning or price controls.

On the plus side, the delusion-induced periodic shakeouts help insure that the resources rally will stay better anchored to fundamentals throughout. In other words, being much less of a bubble than "real" estate or paper markets typically become.

Anonymous said...

Thanks Tim for pointing out the Baltic index a while ago. Been watching ever since then.

Anonymous said...

fuck all of you awho's against the bail out as long i pay on time that's all it matters its not our fault those greedy fuckers in wall street,lenders, banks, appraisser especially the loan offcer because of that YSP instead that buyers or homeowners could qualify for prime they put them into toxic subprime loans just for his best interest now alot of homeowners is be fooled. so you asshole ur money or your tax is not enough to bail us out i paid tax to mutha fuckerand i pay on time my monthly mortgage and i cant access my equity fuck u mutha fucker and your whole family those who disgust of bailing us out fucking hypocrite

MAX2205 said...

LOL. Chill TF out

Anonymous said...

Devo was right.......

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