A Collapse In Global Trade

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Source: Zero Hedge

Coventry League exited the U.S. equity markets last summer despite some prospective investors and silent partners—not being so silentquestioning our rationale during such an ebullient market. 

Well, we aren’t the brightest folks in academics or most articulate. However, we seem to have a knack—read, luckfor capital allocation, having achieved some pretty good unlevered annualized returns over an entire business cycle. Nevertheless, the market is down roughly ten percent since late 2014, so congratulations if you bought puts on broad-based indices. 

Of course, there were signs of a global slowdown over a year ago with the sluggish performance of Caterpillar’s international sales, a fair proxy and leading indicator (again, if you heeded these subtle indications, then much praise to you)

Now, please reference the often-referenced Baltic Dry Index (BDIY), a harbinger of things to come in global trade:

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