Baltic Dry Index (BDI) continues to flash negative
As FOMC and related noise fade away we are left as we were before the negative market action that attended the event everybody already knew was coming (taper and Fed Funds rate hike talk).
Back on November 11th we noted that the BDI was tanking even as the ‘inflation expectations’ ETF (RINF) was making a new (and as it turns out, final for that leg) high.
Well yes, inflation followed. So too have commodities (CRB index). Neither of these has dropped as precipitously as the BDI. Yet, anyway.
While my bias is toward a positive broad market Santa seasonal engaging promptly, I am not married to that or any other view right now in light of the still unanswered questions about 2022 (inflation, deflation or Goldilocks or what mix of each, when?).
As of now, the index of shipping costs is still pointing south.
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