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Invest in shipping comeback

Invest in shipping comeback
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If we want to invest in the shipping industry and particularly in the dry bulk freight rates , one of the best options is the BDRY (ETF) which invests straight in these rates. The rates in the industry are in a historical low , partly due to some one time issues like the Brazil iron ore production and although always things can get worse , the probabilities favor long positions. There are already some signs that prices have bottomed out and our quantamental model has already raised a flag for a long positions. Even though its market cap is very low (3-4m USD) , the fund is open ended , so it can accommodate any size investment. Its price currently stands at 10.73 and our model gives a probability of more than 70% to surpass 13.5 USD the next 3-4 months.

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