Fears of a U.S. recession spread through the global markets Monday as international exchanges registered sizable one-day declines. But just how valid are these concerns? Street Signs host Erin Burnett and Mad Money's Jim Cramer teamed up to ask Eagle Bulk Shipping CEO Sophocles Zoullas how his company was faring.
A drop in dry-shipping spot rates might offer clues about whether or not people are expecting a major slowdown, Burnett noted, but Zoullas said he didn't see it. The CEO admitted the Dry Bulk Shipping Index was down, but commodity pricing for trading ships is up: Iron ore's spot price is 70% to 100% above contract price, he pointed out.
"We're at a seasonally slow period," Zoullas said, "but the market is fundamentally very healthy."
But "the stocks cannot simply be this wrong," Cramer rebutted, adding that there's "some chink" in Zoullas's story. How can most of the dry bulk shippers -- except for Diana, whose CEO expressed some concern during a Mad Money appearance -- be so bullish when their own stocks are cutting cut in half?