Alphabulk, part of AXS Marine, is warning dry bulk is a long way away from being a healthy investment.
In its latest weekly report Alphabulk points out that while the Baltic Dry Index averaged 1,352 points in 2018, a decent improvement over 2017’s 1,142 average, it is still not a comfortable figure.
“Taking a 10-year perspective has an instant cooling effect: yes the trough was in 2016 but we are far away from having made it to the other side of this crisis,” Alphabulk observed, pointing out how despite last year’s 18% improvement, the BDI’s 2018 average was still 50% below 2010 levels.
Analysts at Alphabulk then went on to highlight how investing in shares rather than dry bulk had been a far better bet over the past decade.
“If we look at an unleveraged investment of $1 million on 1 January 2009, this investment would be worth half its initial worth had it been invested in the BDI but nearly $3 million had it been invested in the [Dow Jones],” Alphabulk reported, adding that the results were similar on other other major bourses around the world.
“This gives credit to the good old joke: how to become a millionaire in shipping? Start off as a billionaire!” the report concluded.