My 1st Million At 33 – yes, you can do it too

Baltic Exchange Dry Index indicates the shipping rates around the globe. The actual data is not free and hard to look up. Here is the only place from investmenttools that I can to have any historical charts:

In conjunction with CRB index making new high, the “decoupling” theory of the global economy from US economy seems to be temporarily in play.

This has certainly not gone unnoticed by the shipping stocks NAT which were previously recommended here. NAT has gone from mid-20 to almost 40 now since March of 2008. I have recommended selling NAT back in Dec 2007 or early Jan 2008. My reasoning was that I did not subscribe to decoupling theory. However, whether decoupling theory is true or not, there seems to be an abundance of capital around the globe to bet on continual strength in emerging markets and its related bets.

Certainly, I have been more than amazed. But all the related charts seemed to indicate such. For now, I concede my defeat. However, it will be very interesting to see how things will look in the emerging markets when oil prices go above $200. As Mish have said in his blog, high energy price is actually deflationary (for non-energy related prices), only because you have less to spend on non-energy items.

It certainly looks like the commodity boom will continue for another while. If crude oil has a short term correction, I will definitely be a buyer. If not, I may have to slowly edge back into this market.