During my conference call in mid-December I discussed the importance of monitoring the Baltic Dry Index. The Baltic Dry Index is a statistic in the shipping world. It serves as a leading indicator for the health of the global economy by acting as a barometer of global trade. The index surveys the price of transporting raw materials by sea.
In recent weeks the Baltic Dry Index has been peaking up some steam, albeit slowly. The index was up four days in a row and is well off its bottom.
A recent report has identified that shipping to and from countries including China, India and Pakistan has been improving as of late. Although this does not mean that global trade is bouncing back to its recent peak levels any time soon, it may signal that we are at or very near bottom in terms of the economy. This would obviously be welcomed news for individuals around the world.
Mounir R. El-Ayari, CIM, FCSI, C.h. P. Strategic Wealth
Associate Portfolio Manager