Updated from 6:59 a.m. EDT
Despite its importance in signaling current global growth trends, the Baltic Dry Index is hardly talked about by financial media pundits. It's not as sexy as
or even other consumer plays such as
Procter & Gamble
The index, which covers dry bulk shipping rates and is managed by the Baltic Exchange in London, is an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a time-charter and voyage basis, the index covers supramax, panamax and capesize dry bulk carriers carrying a range of commodities, including coal, iron ore and grain.
Basically, it is an index that signals how global trade and growth are currently faring. And with the index down for the majority of the last month, many market participants feel that global growth is indeed slowing.
So what does this mean for the market?
At Stockpickr.com, we've created the Baltic Dry Index 101 portfolio, which includes such names as
Star Bulk Carriers
Eagle Bulk Shipping
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