DryShips (NASDAQ: DRYS): A Rare Opportunity to Earn 134% a Year From This $3 Stock

With Wall Street currently fixated on the budget debate in Washington, it's easy to forget that there are actually other forces at work, with many sectors trading independently of the U.S. government drama.

Shipping stocks in particular are on the move and appear to have legs for further appreciation. The action is directly related to positive economic data out of China, which has led to expectations for continued investment in infrastructure projects.

Last month, China announced exports and manufacturing data that exceeded analyst expectations. Demand for autos also came in higher than projections, while inflation measures were relatively tame. This sets a perfect environment for Chinese policymakers to continue to invest in stimulus projects without fear of unwanted inflation.

As an aside, it doesn't really matter whether these reports are legitimate or not -- not in the short run at least. The fact that China's economic data points to modest growth and low inflation leads investors to believe that Chinese policymakers will continue to plow stimulus into the economy, driving demand for materials used in infrastructure projects. (more)

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