To show how far emerging markets have fallen, and where they are headed for 2009, look no further than the theory of ‘decoupling’, says Irwin Greenstein, writing for Contrarian Profits.

Data released this week show that China is still flying in the face the global economic slowdown. Retail sales there soared 21.6% year on year  in May, despite a devastating earthquake and stock market slump. Exports for the same month surged 28.1%, even as demand in major western markets faltered.

“The export statistics are serving as evidence of an economic theory known as ‘decoupling,’”, writes Jason Simpkins in Money Morning, “in which emerging markets in Asia and Europe have developed enough market place muscle to no longer be dependent on the U.S. economy for growth”.

With a wheezing economy that’s struggling with housing and credit problems – as well as a weak dollar – it’s clear the United States won’t be in the investment spotlight this year.

Asset-based investments now dominate the ASX in market value. The mining sector is worth $406 billion in market cap. Financials have fallen to $403 billion. The king is dead. Long live the king.

The People’s Republic of China: When Asia expert Keith Fitz-Gerald first returned to this country a week ago, he was overwhelmed by a single impression.

Gulf energy crisis boosts oil. Why has the oil price stayed above $100, when all other commodity classes have shown larger falls? The gold price has fallen significantly more than the oil price as the dollar gained ground in recent days. There appears to have been a decoupling of the dollar-oil movements that we saw through March.