Written by  I.M. Vronsky

…[Today’s] irrational exuberance will slowly morph into fear and panic as stocks begin to crash, only this time the Dow Index and S&P500 Index may well suffer more severe losses. Moreover, it is highly probable that global stock markets will accelerate and exacerbate their prevailing bear market trends.

…Below are…many fundamental and technical indicators heralding an on-coming big bear market in US Stocks.

Baltic Dry Index

The Baltic Dry Index (BDI) is an economic indicator issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides “an assessment of the price of moving major raw materials by sea.”

The index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as building materials, coal, metallic ores, and grains.

Source

Because dry bulk primarily consists of materials that function as raw material inputs in the production of intermediate or finished goods, such as concrete, electricity, steel, and food, the index is also seen as an efficient economic indicator of future economic growth and production. The BDI is termed a leading economic indicator because it predicts future economic activity.

…[As the chart below shows] the Baltic Dry Index is at an all-time low.

With a view to putting the BDI into perspective [below]… are two charts:

1. BDI vs the Bloomberg Commodity Index

2. BDI vs Commodity Research Bureau Index (CRB)

Obviously, the BDI runs in tandem with both the Bloomberg Commodity Index (BCOM) and the Commodity Research Bureau Index (CRB). Clearly, demand on average for all commodities is falling dangerously…implying hard economic times are brewing on the horizon…as world trade volumes relentlessly decline.

Leading Economic Indicators

Economic indicators are among the most closely watched pieces of news in the investment world. Practically every week there is some announcement that affects investors’ predictions about the future of the economy.