Both the Baltic Dry Index and the Cass Freight Index have been in a
downward trend for a while.
The Baltic Dry Index is related to shipping activity, while the Cass
Freight Index is related to land-based transportation of goods.
https://tradingeconomics.com/commodity/baltic
https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/cass-freight-index
The attached graph shows the disparity in to growth of the Wilshire 5000
index versus Gross Domestic Product.. While the fact that GDP does not
include the value of services might explain some of the disparity in growth
rates, it still points to the fact that the markets have gotten ahead of
the value of goods produced.
Factor in that the Federal Reserve has been pumping tens of billions of
dollars per day into the repo market for months and I see an unsustainable
bubble in the making.
I think that we are seeing some irrational exuberance in the markets.
--
Alan W, Shrock
9513 Colegate Way
West Chester, OH 45011-9419
(513) 497-2634 (Mobile)
Latitude 39.319576500
Longitude -84.461717800
"Are we being good ancestors?" - Jonas Salk
Attachment:
^W500 vs. GDP.png
Description: PNG image
