Strong growth underpinned by strong coal and iron ore trades to China and india, should continue to propel material equity price appreciation over the course of the next 12 months, in my opinion. I believe, charter rates, already at a historical high point, will continue to positively affect dry bulk charter owners in major trading routes.
Considering the sub-par economic growth expectations in the U.S. for both 2008 and 2009, I suspect investors will begin to diversify away from the more U.S. cyclical sensitive names and gravitate towards the Asia secular growth plays. In my view, as we move through the U.S. slowdown, the growth themes arising from the relocation and outsourcing of manufacturing capacity in China will begin to profoundly resonate with the American institutional investor.
$43.03 (01/29/08)
