Back to Basics - Agriculture is Still in a Bull Market

Back to Basics - Agriculture is Still in a Bull Market

People who follow my work can apprehend I've got been bullish on commodities since 2002. In 2003 I held a seminar in London together with respected world investor Jim Rogers where I explained why I was allocating a giant half of my wealth to commodities.

My read has not modified; this still is a commodity bull market and those that do not have an exposure to commodities are missing out. Before I address the present scenario I was re reading Hot Commodities by Jim Rogers where he states "Warning There can be setbacks, I cannot promise a stairway to heaven. No bull market in any asset has ever gone straight up" Many forget that each one Bull markets have set backs, the stockmarket failed to go up in a straight line between 1982 to 2000 it had several set backs, but it absolutely was a bull market. If we have a tendency to say this bull market started in 2000 and a typical bull market lasts eighteen to 20 years then we still have it slow to go.

Most investors primarily based in Europe and therefore the USA forget how tiny a part of the globe we tend to are, and also the true growth is coming from China,India and different developing economies. Lets face it the UK, Europe and the USA have had their best years, they need had their years of growth and consumption, its currently time for different countries to lead. Regardless of what your nationality is and where you reside everybody consumes agricultural and soft commodities and can continue to try and do so. As the worldwide population continues to grow and living standards increase in developing economies so will calories consumed. Forget concerning all they hype regarding additional cars, TVs, fridges I'm talking concerning the developing economies trading up from simply rice to maybe rice and pork or rice and chicken.

I might guess that ninety five% of those reading this do not own any agricultural commodities, I see one thousand's of financial advisors and fund managers investing their clients cash within the stockmarket, property, bonds however when it involves commodities bar some specialise funds, its unparalleled to have a holding in commodities. I typically hear commodities are "risky" these are the identical folks that invest in shares that could I remind you're way riskier than commodities, shares go to zero, no commodity has ever gone to zero. For the last thirty years or so those leaving faculties and universities have aspired to travel and work within the service sector and the monetary sector as these areas have boomed and provided the most effective operating conditions and salaries. Not many folks have left to go in to farming however that might now change. I see the service sector declining for the subsequent ten to 15 years, we don't need thus several banks, insurance corporations, travel companies, restaurants or retailers. These businesses actually in Europe and USA will have a decade of contraction where as farming will be in enlargement mode.

Thus how does one get an exposure? The easiest approach remains exchange traded funds, you'll be able to obtain these via a stockbroker and they can be placed in an exceedingly pension/SIPP or held during a normal account. Owning the ETFS outright means your no subject to margin calls or leverage. If you are willing take a little additional risk then investing in agricultural based corporations is another angle.

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