What does the Baltic Dry Index reaching all-time lows mean for stocks? We all know world economies are slowing down resulting in interest rates at their...

Nicholas Forsyth

Market Matters

What does the Baltic Dry Index reaching all-time lows mean for stocks? We all know world economies are slowing down resulting in interest rates at their lowest levels in history. What I am looking for is any leading indicators that may help identify the trends of the future. When I trawl through mounds of economic data and stock prices I am looking triggers that can get us ahead of the curve. Unfortunately when I compare the BalticDryIndex with Australia's 3 major Iron Ore players all I can clearly see is an extremely strong correlation as opposed to any leading indicator. However, one point I have been reiterating at length recently is strong trends usually go much further than expected, the below should be considered very seriously: -The Baltic Dry Index making 30 year lows can go much lower. -Iron Ore has fallen by over 50% in the last year, BUT it was 75% lower only 12 years ago when the Baltic Dry Index was above current levels! -I am technically bearish both BHP and Copper on a long term basis. See full report (VIEW LINK)


Nicholas Forsyth
Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment
Elf Footer