From Wikipedia, the free encyclopedia

The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index tracks worldwide international shipping prices of various dry bulk cargoes.

The index provides “an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.”

Well, The Baltic Dry Index has now reached the 2008 lows signaling the economy is in dire strength. The market has become an illusion based on overvalued securities pumped up by low volume. The Baltic Index is a great indicator of global trade. Once again, I’d advise sitting in cash and waiting this out. If you must, hold U.S. Treasuries, Mortgaged Backed Securities,or Municipal Bonds.