'No Recession,' Says Jim Cramer As Analyst Points To 'Good Sign' Of Rebound In Commodities

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

What Happened: 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.

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.

See Also: Best Commodity ETFs

Why It’s Important: 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%.

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.

The iShares MSCI China ETF (NASDAQ:MCHI), which tracks moves of China stocks available for international investors, edged down 0.53% to $45.14, according to data from Benzinga Pro.

Related Link: China’s Q2 GDP Miss Stirs Unease: Alibaba, BYD, Other Stocks In Focus As Analysts Point To Consumer Slowdown

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