Tuesday, April 1, 2008

Bespoke: On Divergence of Baltic Dry Index and Shanghai Stock Index


Bespoke presents this chart showing the longer term corellation of the Baltic Dry Index and the Shanghai Stock Index. The Baltic index is based on freight shipping rates of bulk dry materials as is something of a measure of economic activity. The theory is that no one is buying and shipping bulk materials unless he feels he can sell the products made from them.

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