Deere Ready to Grow in a Corn-Crazed World
The best investments in 2007 were in energy and agriculture, as prescient investors profited from emerging countries' need to supply their fast-growing economies.
And so far this year, the trend continues. Seed, fertilizer, pesticide and farming-equipment companies have been among the few to avoid ruin in the first two weeks of 2008.
I spoke with veteran speculator Jim Rogers about this phenomenon late last month, and Rogers, a trading partner with George Soros, said ag was essentially the only sector he likes. Rogers is talking his own book, to be sure; he has created indices and exchange-traded funds that make the purchase of grains and other soft commodities easier for nonprofessionals. But that shouldn't prevent us from listening.
"The number of acres devoted to wheat farming is at a 30-year low while inventories of food worldwide are at their lowest since 1972," Rogers says. "With so much corn going into our tanks as ethanol, a growing middle class worldwide eating more corn-fed meat and wearing more cotton than ever, agriculture has a great future, if you ask me, and that's why I'm buying."
How to Play the CornfieldsOne of my favorite plays in the space is farm-equipment maker Deere (DE). It's been on a tear lately, so it's buyable only on dips, but you really need to make sure it's on your list of names to pick up on big down weeks.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV