My play for 2008 is clear. It is to long agriculture related securities. Why? Because we all have to eat, recession or not. And as emerging markets are growing, more people can afford food. The acreage of land for agriculture isn't getting any bigger neither. Hog prices in China are rocketing, corn and wheat prices in U.S. are the same.
I'll be looking to buy Agricultural ETF (symbol: DBA) for the long term (2-5 yrs).
I can't figure out anything more then a sure play as this. What's the downside here? Are we going to stop eating? Since the ETF invest in futures and agricultural derivatives, there will be no risk in related to rising in energy prices (which squeeze food producers' margins).
Long DBA for 2008!
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