DSSI - 2019 Year In Review And 2020 Positioning
Shipping Markets in 2019: Ultra Bearish Onset
Investing in shipping stocks is always a challenge- this is a violently cyclical industry with little pricing power known for historical corporate governance challenges. We ended 2018 with an exceptionally bearish backdrop as the broad market was wholly focused on the escalating US-China Trade War and the entire stock market had went through a brutal Q4-18, which slammed small cap value stocks like energy and shipping the hardest.
We realized the broad fundamentals were improving and with record-low asset valuations, record-low stock valuations, near record-low forward supply (orderbooks),