Given all of the turmoil in markets this year, we have seen a number of investors change their positions on statements made in the past. Jim Rogers, for example, has now stated that he is looking into investing in Russia after snubbing the country for his entire investing life. But there is one thing that Rogers is still as bullish as ever on, agricultural commodities. It has been no secret that he has been a fan of these hard assets for quite some time, but a recent interview shows that he still loves these commodities and is as bullish as ever [for more agricultural news and analysis subscribe to our free newsletter].
Mr. Rogers justifies his love by going back to the basics of commodity investing. “With all commodities, the most important factor is supply and demand” he states. After all, a commodity is only worth what someone will pay for it and that price has a tendency to rapidly change over time. As for agricultural products specifically, Rogers notes that inventories are near historic lows as our global economy has been consuming more than we have been producing for nearly a decade. He is also quick to point out the disturbing trend of a shortage of farmers that could impact these assets.
Finally, Rogers weighed in on how the new open-ended quantitative easing program will impact the future of the ag world. If the continue to print more money, “that will just be icing on the cake” as far as Rogers is concerned. Money printing will debase the dollar and should allow for real assets like ag to make a nice jump. For those of you who buy in to Rogers’ theory on the agricultural world, we outline several options to invest in these hard assets to allow your portfolio to potentially rack up some nice profits [see also How Jim Rogers is Preparing for a Recession].
- DB Agriculture Fund (DBA): One of the most popular commodity ETFs, DBA is designed to reflect the performance of the most popular agricultural commodities by investing in a broad basket of futures contracts. The fund has over $1.9 billion in assets and trades nearly 1.2 million times each day.
- Market Vectors-Agribusiness ETF (MOO): This ETF invests in a basket of stocks that derive at least 50% of their revenues from the agriculture industry. One of the most appealing features of MOO is its diversity, as the fund invests over 60% of its assets abroad [see also 50 Ways To Invest In Agriculture].
- Potash (POT): For all of you stock pickers out there, this fertilizer firm offers a dividend yield of nearly 2% and may be an attractive option for income investors.
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Disclosure: No positions at time of writing.
[...] for over a half-century. Nevertheless, Australia has very significant and efficient mining and agricultural sectors, and ranks highly in the world in many categories [for more commodity news and analysis subscribe [...]
[...] for over a half-century. Nevertheless, Australia has very significant and efficient mining and agricultural sectors, and ranks highly in the world in many categories [for more commodity news and analysis subscribe [...]
[...] products continues to grow at an alarming rate. Among these commodities, grains are perhaps the most essential, as they are the staple of food products all over the world. Food commodities enjoy relatively [...]
[...] products continues to grow at an alarming rate. Among these commodities, grains are perhaps the most essential, as they are the staple of food products all over the world. Food commodities enjoy relatively [...]
[...] for over a half-century. Nevertheless, Australia has very significant and efficient mining and agricultural sectors, and ranks highly in the world in many categories [for more commodity news and analysis subscribe [...]
[...] products continues to grow at an alarming rate. Among these commodities, grains are perhaps the most essential, as they are the staple of food products all over the world. Food commodities enjoy relatively [...]
[...] Intl Commodity Agric ETN (RJA): Rogers has stressed over and over again that investors need to own real assets if they want to protect their portfolios. Rogers’ agricultural ETN invests in a basket of 20 [...]
[...] Commodity Agric ETN (RJA): Rogers has stressed over and over again that investors need to own real assets if they want to protect their portfolios. Rogers’ agricultural ETN invests in a basket of 20 [...]
[...] The Dow Jones-UBS Cotton Total Return Sub-Index ETN (BAL) had an incredible run in 2011, as cotton prices soared to highs not seen for quite some time. Unfortunately, the same cannot be said for 2012, as BAL has been sliding since May of 2011. On the year, BAL surrendered 12.8% and, sadly, was the third-best performer in the softs category. With cotton still reeling from its run in 2010 and 2011, the coming year may see prices hit a more sustainable level and finally take some of the pressure off BAL [see also Why Jim Rogers Still Loves Agricultural Commodities]. [...]