Jim Cramer Sees Positive Signs In Commodity Prices And China’s Economic Growth

Martha Stewart and Jim Cramer of CNBC speak during the Martha Stewart American Made Summit at Martha Stewart Living Omnimedia Headquarters on October 22, 2016, in New York City. (JOHN LAMPARSKI/GETTY IMAGES)

CNBC Mad Money host Jim Cramer Monday commented on economic growth and inflation’s trajectory.

Charles Schwab Chief Investment Strategist Liz Ann Sonders shared a chart of commodity prices on Twitter and commented that they are rebounding with nearly 75% having positive monthly returns.

Jim Cramer at the Keep a Child Alive Black Ball at Hammerstein Ballroom in New York, NY on October 19, 2016. (REBECCA SMEYNE/GETTY IMAGES) 

This, though down from the previous week’s 81%, is elevated compared to the past year.

Giving his take on the chart, Cramer said “no recession.. good sign.”

Going by the future of China, as represented by Baltic Freight, Cramer said inflation is low too.

The Federal Reserve is expected to raise the interest rates in the next meeting as Fed Chairman Jerome Powell is aiming to get to the 2% interest rate.

The Baltic dry index, or BDI, has pulled back notably after peaking in Sept. 2021. Dry bulk accounts for the largest ocean shipping market in volume terms.

The index has become an indicator of the Chinese economy’s strength over the years, a Freight Waves report showed. The BDI is 40% weighted to spot rates of Capesizes, bulkers with a capacity of around 180,000 deadweight tons and cape-sizes rates depend largely on long-haul iron exports from Brazil to China, the report added.

The BDI has plunged about 83% from its Sept. 2021 peak and in the year-to-period, it has retreated 35.51%.

Visitors view a BYD new energy vehicle at a new energy industry expo in Hohhot, Inner Mongolia, China, June 8, 2023. BYD is one the EV competitors in China along with Tesla. (COSTFOTO/GETTY IMAGES) 

Ark Invest founder Cathie Wood said in a podcast last week China is now at the margin as it has downshifted from 15 years of double-digit GDP growth rate to high-single-digit growth now.

Slower growth in China will remove the pressure on consumption and bring down global inflation, a JPMorgan analyst said, according to Wall Street Journal report said.

China has competed with the United States in the EV market where it has become the biggest competitor in clean energy.

Tesla currently has a factory in Shanghai where it is one of the largest markets along with the United States. 

Chinese EV companies, such as BYD and Nio, have given Tesla high competition in the EV market in China. BYD and Nio have yet to sell EVs in the United States. Tesla remains the largest EV seller in the U.S. along with Ford and Rivian.

Produced in association with Benzinga

Edited by Alberto Arellano and Joseph Hammond