China Freight Index Collapses To Fresh Record Low
The Baltic Dry Index has risen for the last few weeks, buoyed by hopes (a la Iron Ore) of a National People's Congress stimulus surge from China. While the scale of the 'bounce' is negligible in real terms compared to the total collapse, it has caused such momentum-muppets as Jim Cramer to proclaim China 'fixed' and investible. So we have one quick question - if everything is awesome, why did the China Containerized Freight Index just crash to new record lows?
It appears BDIY gets over-excited relative to CCFI...
Only to rapidly crash back to CCFI reality shortly afterwards. Given the complete collapse back of Iron Ore, the hopes placated on the dead-cat-bounce in BDIY appear a little misplaced.
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