Baltic Dry Index Up 16% in a Week

The Baltic Dry Index is often cited by economists as a bellwether of global economic activity.  The index, which measures the price of transporting raw materials by sea, has now risen by more than 21% from its recent lows and is also up 16% in the last week alone.  The index, however, is not immune from critics who argue that the index is extremely volatile and has often provided false alarms on both the upside and downside.  That being said, in an environment where investors are beginning to price in a global recession, the increase in the Baltic Dry Index calls that view into question.

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