The BDI has been kind of stagnant
for the last couple weeks. Notice the Cape index has been hovering around $40K whereas it was over $80K as recently as November. Seems to me that this is simply a matter of 'cash in = cash out' and rates have dropped.
I'd like to think that rates will bounce back up, but I don't have a crystal ball and consumer demand isn't exactly strong. On the other hand, this is probably an excellent time to be adding shares for a long term hold looking ahead to when this recession is over. Genco isn't going anywhere and this stock WILL go up when the economy picks up. Anybody know how long that will take?
If you compare the long term BDI chart with the 1 year GNK chart, you can see the spikes in May and November correlate to an increase in share price. That's why I watch the BDI every day.