Due to the economic slowdown, in January of this year, this key indicator reached a 25-year low,” says Lombardi. “Since then, the index has just continued to fall, and remains near its low. Since 2008, this key indictor has plunged 90%.
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New York, NY (PRWEB) August 27, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, the Baltic Dry Index has plunged, due to the state of the economy. This index, which measures the shipping rates of transporting bulk dry commodities worldwide, is a key indicator, because it gauges the demand of the basic raw material inputs that go into every factor of finished goods, building materials, and food.
“Due to the economic slowdown, in January of this year, this key indicator reached a 25-year low,” says Lombardi. “Since then, the index has just continued to fall, and remains near its low. Since 2008, this key indictor has plunged 90%.”
In the article “A Chilling Indicator of What’s Ahead for the Economy,” Lombardi notes that after the financial crisis of 2008, the orders for new containers could not be cancelled. This resulted in a glut of ships sitting empty or delivering goods for literally pennies, he explains.
“Germany is home to roughly 40% of the world’s container shipping fleet,” says Lombardi. “The financial crisis wiped out 100 German ship funds. Since then, the global economic slowdown has seen 70% of the remaining shipping fleet in financial distress, with 800 of them on the brink of bankruptcy.”
Lombardi thinks that there are still many clinging to the notion that economic growth will accelerate in the second half of this year. But based on the Baltic Dry Index, Lombardi expects more of a global economic slowdown instead, with the real possibility of a recession.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.