THE LONG-TERM “AG” BOOM CONTINUES
One of the market’s biggest long-term uptrends shows no sign of stopping.
While the “official” statistics on inflation have been tame so far in 2012, they’re obvious to anyone watching food prices.
As “paper money,” like the U.S. dollar, loses its purchasing power, prices go up for agricultural commodities like corn, soybeans, and wheat.
Predicting crop prices is a tricky game. A few months of good weather, including adequate rainfall, could send prices lower.
However, the one thing that is certain is that farmers will continue to plant as much as they can to take advantage of high prices.
That means steady growth for businesses like Monsanto (MON), which sells a wide range of seeds, including corn and soybeans.
Monsanto is one of the top picks in Porter Stansberry’s Investment Advisory.
As you can see in today’s chart, Monsanto has been in a steady uptrend since late 2010.
Last week, shares broke out to their highest level in more than three years. It’s just the latest sign that the long-term “ag” boom deserves investors’ attention.
– Larsen Kusick
Source: Market Notes