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As the worst of the global credit crisis passes, investors are focusing once again on the larger themes that will dominate the investment landscape over the next decade. Scarcity will be one of the big ones, as emerging markets continue to compete for resources, foods and basic necessities. Once again that will exert upward pressure on the price of oil, metals, farmland and even water. In fact, commodity prices are already rising faster than one might expect, considering economic conditions. But that`s mostly speculators betting on a return to more normal economic conditions. Given the prospects for a weak recovery, prices may well correct over the next year. The better strategy may be to bet on sectors where scarcity will drive growth. Here are some ideas based on the theme.
AGRICULTURE
The world will have an additional one billion mouths to feed by the end of the next decade. Meanwhile, rising incomes in emerging markets are allowing millions of people to switch to diets based on animal proteins, leading to increased demand for grains for animal feed. But increasing demand is occurring at a time when agricultural productivity is low, having fallen by almost half between 1990 and 2007. To keep up, the world needs to invest heavily in bio-agriculture initiatives, which presents several opportunities for investors. In the years ahead, agricultural companies and fertilizer producers are strong, long-term investment bets. Alternatively, there are six agricultural ETFs in the U. S. available to investors.
Read the full article here.
AGRICULTURE
The world will have an additional one billion mouths to feed by the end of the next decade. Meanwhile, rising incomes in emerging markets are allowing millions of people to switch to diets based on animal proteins, leading to increased demand for grains for animal feed. But increasing demand is occurring at a time when agricultural productivity is low, having fallen by almost half between 1990 and 2007. To keep up, the world needs to invest heavily in bio-agriculture initiatives, which presents several opportunities for investors. In the years ahead, agricultural companies and fertilizer producers are strong, long-term investment bets. Alternatively, there are six agricultural ETFs in the U. S. available to investors.
Read the full article here.