The Baltic Dry Index is Shouting “Danger, Will Robinson!” But Are Investors Listening?

Back in May 2008, when global investors still expected economic growth to continue, a thinly followed index began to broadcast a "red-alert" warning to those few who were watching. The index proceeded to drop by more than 90% in the next six months. Had you been watching - and heeded its warning - this index would have saved you from the fallout of the biggest financial crisis since the Great Depression. And here's the thing. This index is updated five days a week and is readily available to anyone who wants to track it. The index in question is called the " Baltic Dry Index ," or BDI, and it once again merits a closer look: After peaking in May, the BDI has fallen for 35 straight days. Is this another economic red alert, or merely a statistical red herring, like so many of the other economic reports that have appeared during the often-contradictory, whipsaw markets we've seen of late? Let's take a closer look... For advice on how to protectively position yourself, please read on...