Babak submits: This is a follow up of an earlier article from a few months ago on the relationship of the Baltic Dry Index and the stock market. I wanted to revisit the thesis because it seems I’m wrong and I don’t miss an opportunity to point out my errors in the hope that I can at least learn something from them.
My original article presented the Baltic Dry Index as a leading indicator for the stock market. There is some logical rational for that since the BDI tracks international trade and that tracks economic activity which eventually is translated into profits and eventually changes in stock prices. While he disagreed with this thesis, Albert Edwards of Societe Generale mentioned my article and chart in one of his research notes - making my month.
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