Just 3 short months ago, we detailed how - thanks to the collapse in China's growth and massive commodity inventory gluts, the cost of renting a Dry Bulk Tanker was less than the cost of renting a ferrari for a day...
As Bloomberg reported at the time,
Submitted by Brandon Smith via Alt-Market.com,
Most people are not avid followers of economic news, and I don’t blame them. Financial analysis is for the most part boring and tedious and you would have to be some kind of crazy to commit a large slice of your life to it.
Submitted by Brandon Smith via Alt-Market.com,
Despite its 98% crash from 2008 highs, and its plunge to record (35 year-plus) lows, the recent rally (off sub-300 lows) sparked a wave of exuberance with such luminaries as Jim Cramer proclaiming this a sign that everything is fixed again in China. Having risen non-stop since Feb 10th, coincidentally the same time that the entire world suddenly and unexplainedly went full risk-on short-squeeze buy-buy-buy, The Baltic Dry Index dropped today - which should not surprise many as China's Containerized Freight Index crashes to record lows...
The Baltic Dry Index has risen for the last few weeks, buoyed by hopes (a la Iron Ore) of a National People's Congress stimulus surge from China. While the scale of the 'bounce' is negligible in real terms compared to the total collapse, it has caused such momentum-muppets as Jim Cramer to proclaim China 'fixed' and investible. So we have one quick question - if everything is awesome, why did the China Containerized Freight Index just crash to new record lows?
It appears BDIY gets over-excited relative to CCFI...