Tuesday, April 27, 2010

Shipping update

This rather obscure index of shipping costs in the N. Atlantic has turned up in significant fashion in the past month or so, after having been very weak for most of the past year. I don't know much about this index (as I've said before), but where there's smoke there is undoubtedly fire. Shipping activity must be picking up, and this has almost nothing to do with China or with commodities. This is a clear positive for the outlook.

1 comment:

Benjamin Cole said...

Die, recession, die, die, die.

Last night, on some business news cast, they talked about Greece, and that capital would seek safety in USA, again (ceteris paribus etc) lowering our interest rates.

I gotta say, I see this theme again and again: Huge mountains of global capital, looking for a home. USA is a safe home. Ergo, low interest rates for USA

"Crowding out" by US government borrowing appears impossible.

If John does not bash the market again, this appears to set up for a sustained rally in equities and property.