Below is an overlay of the Baltic Dry Index and US Equity market Volatility. Both have been headed in one direction as of late – lower.
There will undoubtedly be plenty of explanations for this, but I’d like to solicit our exclusive network of risk managers for thoughtful responses. The VIX hasn’t been this low since the end of April. Everyone knows what happened to US equities for 2-3 months thereafter.
In Global Equities, if China, India and Brazil didn’t look a lot like this Baltic Dry chart since early November, I wouldn’t be calling the Slowing Global Growth point into attention.
If you have time, send us your replies and we’ll pick the best one and post it anonymously.
Thanks in advance,
Keith R. McCullough
Chief Executive Officer