Perhaps you may questioning, Why compare nickel price with KLCI? Is there any relationship between nickel and KLCI? Well, before I explain further, we have to know what is nickel. Nickel is one of the rare earth metal which we can represent by symbol Ni (sound familiar right ^^this is normally our secondary school chemical teacher taught us). What is the Ni function? It is used as catalyst in many chemical process, vital material in producing stainless steel. Having say that, food industry, construction industry and automotive industry very much depend on the Ni. What happen to nickel price if those 3 industries are gearing up? For sure its price will climb up since the supply is less than demand. Nickel price is the best indicator which we can use to "measure" economy. Nickel price normally leading stock market index by one quarter.Why? Company financial report is announced by quarterly basic. If we use financial report to judge the economy, we're actually lagging behind.
Another indicator which we can use to judge economy is BDI. The chart itself is very much self explanatory. BDI is an index to measure import and export activity. BDI higher mean the shipping demand increase and vice versa.
Base on Nickel and BDI indicator, we can accurately predict future economy trend.
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