I read an article about rice panic, and I checked stocks like MOS and POT, and the new IPO in IPI next week, looks like we'll have a food crisis this year, and DBA is the way to safely invest. So yesterday I added DBA and DAG(double ETN on DBA).
- People buy POT and MOS, due to the fact they think there is a food shortage in the world, and it could not be solved anytime soon.
- Similarly, when gold started to turn in 2001, gold stocks went up more than gold. Now I think the food price, which started to turn in 2006, still have a long way to go. It's unlikely the bull in food will end anytime soon.
- There will have corrections along the way, but it's worth the patience.
- I think POT and MOS ran up too fast recently, due to the fact that China agreed to triple the price for potash, the previous hike is 15 months ago.
- So if you're aggressive, buy POT and MOS on dip, otherwise, you can safely buy DBA and DAG.
- Agriculture is the new game, and the food inflation is the hardest to correct, it's still in early stage.
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