Showing posts with label Activity. Show all posts
Showing posts with label Activity. Show all posts

Baltic Dry Index - a key index to help measure the World Economic Activity


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The Baltic Dry Index or BDI, is an index with twenty-two large dry bulk shipping and compiled as a day in London. This index provides an assessment of the price movement of raw materials such as ore, grain, coal and cement by sea. This index does not include products such as oil wet.

Since this index is non-negotiable contract that is not a direct component speculative. Even if the contracts that contain a speculative component, the cost of influenceShipping. A component that has a speculative component to not less than 30% at the time of writing (October 2007), and crude oil. Another reason is the U.S. Dollar. Since the index is measured in dollars, is the sharp decline in the dollar in part responsible for the recent near vertical rise in the index.

Why should an investor or care practitioner about how much it costs to dry cargo ship on the sea?

Transport by sea can be a good barometer of the volume of worldTrade. This index is a good indicator of future economic growth and the production such as raw materials are the extradition of its preliminary stages of production. Furthermore, because the number of ships available to relatively fixed, the price of the shipment up or down based on demand and supply. If global growth slows, decreases the cost of transportation of raw materials. If global growth, accelerated and the shipping costs for raw materials is likely to increase.

Today is a big part of demand for oil --The goods from China. The cycle of growth in China affects the profits of many businesses around the world. After an index for a tip when the trend of declining demand for fresh produce, or it can give important clues to changes in general economic activity can.

A century ago, the Dow Theory has become increasingly popular, and is still in use. However, it is much less effective in the new global environment. Part of the Dow Theory, which requires a newup the Dow Jones Industrial Average Average must be confirmed by new highs in the Dow Jones Transportation. A failure to confirm the two indexes to new highs, at least within a reasonable period of time, usually means a possible trend reversal, which will be confirmed by price action itself. On the other hand, if the two indices confirm the high again, it is assumed that the trend is intact, and the prices you can expect to move more. The same theory can be applied in the opposite direction, a confirmation orUnconfirmed low, in order to acquire the signals could be derived from an index to a new low, but not confirmed by others. The basis of this theory is that if goods are produced, extracted or raw materials, it is important for companies that move goods between the districts and also in terms of increasing value. With an average value of stock prices is not directly the costs of transporting these goods, how it works in reality by measuring the cost of transportation, but when theTransport companies make more money, you might conclude that there is more transport activity and, hence, economic activity in general.

Now that the economy has become global, with China and other emerging markets, an increasingly important factor in the global economy is a different type of file transport index. The Dow Jones Transportation Average is composed of shares of companies only those components that raw materials and transport finished products.For example, airline passengers and small packages are also included. While it may indicate the economic activity, there is very little for economic growth in terms of raw materials can be predicted. A lot of the work is nationwide, so they do not represent the full picture. While there are few companies are represented, which is the global supply of goods in general is very dilute, and not an accurate measure of the movement of raw materials. The measurement of the actual cost ofTransportation of raw materials, but as the value of the stock of transport companies, a direct reference to the development of economic activities. If a transport, not an average industry average is in a new high or low could be a good idea to check to confirm whether the BDI is a significant confirmation.

The BDI is not always a leading indicator. Sometimes coincide and sometimes it can lag. Has flaws, like any other index. He may be shortSwings and which may be influenced more by the dollar and the rotations of oil. But with the BDI in a long-term framework for the development of the shipping cost may give important clues for development in the world, economic growth and contraction. This is an important part of the puzzle to determine more long-term trends in the global economy.

Click on the link in the window of resources, many maps of the BDI-long term, as it correlates with other indices.

See Also : เกมส์ทำอาหาร เกมส์แต่งตัว เกมส์

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Baltic Dry Index - a key index to help measure the World Economic Activity

The Baltic Dry Index or BDI, is an index with twenty-two major dry bulk shipping and compiled as a daily in London. This index provides an assessment of the price of moving raw materials such as ore, grain, coal and cement by sea. This index contains no wet goods such as petroleum.

Since this index is not tradable contract which is not a direct speculative component. Although the contracts that contain a speculative component, the cost of influenceShipping. A component that has a speculative component to not less than 30% as of this writing (October 2007), is crude oil. Another reason is the U.S. Dollar. Since the index is measured in dollars, is the sharp decline of the dollar partly responsible for the recent near vertical rise in the index.

Why should an investor or trader care about how much it costs to dry goods by sea vessel?

Transport by sea can be a good barometer of the volume of worldTrade. This index is a good indicator of future economic growth and production as the raw materials are extradite its preliminary stages of production. Also, because the number of vessels available to relatively fixed, the price of shipping up or down based on supply and demand. If global growth slows, will decrease the cost of shipping raw materials. If the global growth accelerated, the cost of shipping raw materials is likely to increase.

Today is a big part of the demand for crude --Goods from China. The growth cycle in China affects the profits of many businesses around the world. After an index for a hint, if the trend of decreasing demand for fresh produce, or can give important clues to possible changes in general economic activity can.

A century ago, the Dow Theory has become increasingly popular, and it is still in use. However, it is much less effective in the new global environment. A part of the Dow Theory requires that a newhigh in the Dow Jones Industrial Average is to be confirmed by a new high average in the Dow Jones Transportation. A failure to confirm the two indices to new highs, at least within a reasonable time, usually would mean a possible turnaround, which will be confirmed by the price action itself. On the other hand, if the two indices confirm the new high, it is assumed that the trend be intact, and the prices can be expected to move higher. The same theory can be applied in the opposite direction, a confirmation orNon-confirmations of lows, so buy signals could be derived from an index to a new low, while not confirmed by others. The basis of this theory is that if goods are manufactured, or mined raw materials, it is important for companies that move goods between the district and also in increasing value. With an average measure of stock prices is not directly the costs of transporting these goods, how it actually works by measuring the cost of shipping, but if theTransport companies make more money, one might conclude that there is more transport activity, and hence economic activity in general.

Now that the economy has become global, with China and other emerging markets, an increasingly important factor in the global economy is a different kind of transportation index file. The Dow Jones Transportation Average is made up of shares of companies only on the components that transport raw materials and finished goods.For example, airline passengers and small packages are also included. While may indicate the current economic activity, there is little to future economic growth in the way of raw materials can be predicted. A large part of the activity is domestic, so you do not represent the global picture. While there are few companies are represented, which is the global supply of goods in general, it is very dilute, and not an accurate measure of the movement of raw materials. The measurement of the actual cost ofTransportation of raw materials, but as the value of the stock of transport companies, a direct reference to the development of economic activity. If a transport-not an average industrial average is at a new high or low, it might be a good idea to also check to see to confirm if the BDI makes a meaningful confirmation.

The BDI is not always a leading indicator. Sometimes it coincides, and sometimes it can lag. It has flaws, like any index. He may be shortTerm swings that can be affected more by the dollar and oil rotations. But with the BDI in a long-term framework for the development of the cost of shipping can give important clues to the development in the world, economic growth or contraction. It is an important part of the puzzle to determine longer-term trends in the global economy.

Click on the link in the resource box, many maps of the BDI-term, as it correlates with other indices.

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