Dry Bulk Shipping Rates Up 40%: An Investor Trap?

In the following video, Motley Fool industrials analyst Blake Bos takes a look at the big spike in dry bulk shipping rates recently, up 40% since the beginning of June. Blake tells investors why this isn't as clear cut a story as many are hoping, and that a high dependence on the strong Chinese economy could mean that if there were a Chinese pullback, many of these companies are so debt-laden that they could be in serious trouble. He looks at one company in this space that could be a conservative and less-risky play, but continues to tell investors why this space, as a whole, is a bit too frightening for him at the moment.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Dry Bulk Shipping Rates Up 40%: An Investor Trap? originally appeared on Fool.com.

Blake Bos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story