Sunday, February 6, 2011

Baltic Dry Index is Back to October 2008 Levels.

The Baltic Dry Index (BDIY) is back to around 1000 USD, close to the level it was between October 2008 and March 2009.

Is it the pre-cursor for a sharp correction for industrial commodities ?

I suppose it won't stay that low for too long. However, I could not find a reliable way to invest in the Baltic Dry Index.

Some people recommend Guggenheim Shipping ETF (SEA), composed of shipping companies, but it poorly follows the Baltic Dry Index. As you can see in the chart below, the index stays more ore less flat during the last six months, whereas BDI fell by over 50% during the same period.

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