Hey guys, I'm back again and I have an idea. I was watching some show on CNBC last night about the stock markets and they mentioned a few things that might look good to invest in.
They were talking about the droughts in the South and the flooding in the midwest has left this years corn crop looking pretty dismal. The price of corn is expected to skyrocket. As a result, almost all agricultural stocks and ETFs are raising quickly.
I did a quick search to see what some of the best agricultural ETFs were. I found my exact answer here. Now the problem is, Sharebuilder only offers DBA, but I was still able to check the trends of other other 5 on their site. as it turns out, since the beginning of June all of these stocks have jumped over 10%! DBA has almost reached it's its highest point that it did back in March.
Now I have a decision to make. I know that we're in a little bit of trouble this year because of our bizarre weather activity in the US. I'm thinking of putting only $50 into it my next investment time (Along with 2 inverse ETFs for a grand total of $250 invested in July). I'm worried though that with this ETF being almost at its highest price it's been in the past year, it will end up crashing and I will lose dearly.
Again $50 isn't a lot to lose, but it's still $50 that I wouldn't mind keeping. I've thrown it on my Watchlist until investment day comes. Then I can make my final decision. If anything, I'll probably keep it in my portfolio until just before the end of the harvest season and then trade it for something that isn't so high risk.
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6 comments:
Fertilizer companies seem to be winners as well. BTW...do you reinvest your dividends or are you taking the cash dividends? It's been fun to read your blog posts.
Scott, thanks for commenting. currently I'm set up to have my dividends reinvested. I might take them soon and just invest them in some low risk mutual funds so I can let them grow without risking losing more money then the money I've invested.
Oh and I've been looking at the EFT MOO as well... it's been doing pretty decent as well.
I thank you for this nowledge as I am also loking to invest in thsi sector. I want to look for the greenest ones possible. Any tips on these by any chance?
Well like my disclaimer says, I only know as much as the TV and news outlets tell me. I watch the market daily and read and watch material on the markets for a few hours a day. Just keep this in mind when investing and make sure you do your own research. I'll just try to point you towards the way I'm investing.
I'll look into some green companies in the next couple of days to see if there is anything worth while investing in. I'll be posting in the next day or so what I invested in this month. I'm not looking to make big gains, I'm just looking to prevent myself from losing right now since the market isn't doing so hot!
Jesse,
I too have invested in this sector. I purchased an individual stock called Potash (POT), its an Canadian Fertilizer company. Its has been doing very well, however, this past week its down a great deal. I think its a buy opportunity. Check it out.
Thanks,
Michael Pair
Personal Finance Coach
http://investmentsplainandsimple.blogspot.com
for me, agriculture is neglected in which we shouldn't because all that we eat comes from here. I think if we will invest here, we might save the economy
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