The index continued to crumble this week to lows never seen, with the Baltic Dry Index (BDI) at 530, its lowest level ever. Well below the all-time low of 554 points on August 6, 1986.
Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food; the index is also seen as an efficient economic indicator of future economic growth and production.
The BDI is termed a leading economic indicator because it predicts future economic activity.
In December, the wholesale inventory/sales ratio reached 1.22, after rising consistently since July last year, when it was 1.17. It is now at the highest – and worst – level since September 2009, as the financial crisis was winding down:
TREASURY NOTE YIELD
The 10-year Treasury note yield bottomed on January 30 at 1.65%. Today, it’s at 2%. That’s a 35-basis-point spike (a jump of 21%) – in less than two weeks.
And it’s the first sign of an impending stock market crash.
We are now experiencing economic indicators that are bad, with the Baltic Dry Index being the worst ever. And yet the lamestream media continues to tout we are in some sort of recovery. Who even believes that anymore? Not anyone with at least half a brain…
With these numbers, what could possibly go wrong?