Wednesday, May 13, 2009

Marc Faber Loves Agriculture at These Prices

Marc Faber says that investing in agriculture today will be like investing in oil in 2001, when it was priced at $17/barrel, according to The National Post.

Faber says that record low inventories, declining agricultural productivity, and increasing demand for food will drive prices higher.

The falling productivity line is especially interesting...Faber says productivity in agriculture has been declining since 1990, and expects that trend to continue.  If this is true, which I'd imagine it is, it's counter to what most folks (including me) believe.

More reasons to invest in agriculture:
Ed. Note: Stay up to date on the latest in agriculture and be sure to check out our weekly insights published every Sunday: This Week in Commodities


Dennis Mangan said...

Brett: Do you have an opinion on the ETF MOO?

Brett Owens said...

Dennis, I think MOO is a buy here. I don't own any...mostly due to lack of bandwidth...but chart looks great, breaking out to a 6+ month high it looks like. And still extremely cheap historically speaking.

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