Shipping Rates & The Taper

January 15, 2014

By Knowledge Leaders Team in Uncategorized

There are a multitude of indicators that have moved in mostly lock step with the FRB’s asset purchases over the last four years. One is shipping rates. Here we compare the 3-month change in FRB total assets to the Baltic Dry Index lagged by two quarters. The almost 30% drop in the Baltic shipping index so far this year is a negative omen for other indicators that also highly correlated to FRB asset purchases.

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