In an article from Globe Advisor, Globe Investor’s in-house market strategist Scott Barlow suggested that although there is some caution required in the short term, the “outlook has rarely been brighter” for companies in the agricultural sector. He writes that long term trends point to sizeable opportunities in agriculture and related industries such as seed technology, water treatment, fertilizers and more.
As quoted in the publication:
A bumper crop in North American corn has depressed grain prices and led Deere & Co. to lower forward earnings guidance. For Potash Corp. of Saskatchewan, the breakdown of a global cartel reduced global pricing power and reduced revenues.
But investors shouldn’t wait to begin adding agricultural investments. As Warren Buffett famously noted, the best returns result from buying “when people are fearful.”
The long-term outlook for stocks involved with global food production is extremely promising. Investors who begin slowly, adding small amounts to investments each month or each quarter, should reap the benefits as the trend takes hold.
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