Brave New World: ​​Baltic Dry index sinks to all time low; potential glut for oil market

Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this space.

Baltic Dry index sinks to all time low: Index tracking freight rates for world’s largest cargo ships plunges into negative territory as coronavirus slows global trade.

The divergence between the Copper/Gold ratio and the S&P500/Gold ratio is a clear signal that continuous liquidity injections by the Fed/ECB/PBOC are only creating distortions between the real economy and the financial system or what Einstein defined as “stupidity”. ANZ believe that the Copper/Gold ratio might be better proxy of liquidity as commodity’s tend to be less manipulated by “easy money”. In any case the Copper/Gold ratio warrants attention for reflationary assets as it is reflecting the impotence of central banks liquidity injections.

If you think you have a choice, then you are mistaken.

WTI falls below $50/bbl for the first time in more than a year: Bloomberg reports Chinese oil demand is down 20% since Ncov19 outbreak. This is 3m barrels/day. This is huge and a potential "glut" for the oil market.

DeStatis believes orders for new manufactured goods in Germany were about the same in December as they had been in September 2015. It has erased everything from the “boom” of 2017 and then some. (Jeff Snider)