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We need to talk about something…
You see, there's been a growing trend in the stock market that Wall Street doesn't want you to know about.
That's because this could prove to be the biggest investment opportunity for the next three decades.
And with the Dow finally crossing the 20,000 mark today, the Wall Street billionaires are going to work even harder to keep it secret…
So they can keep all the profits to themselves.
Unfortunately for them, I don't agree with what they're doing.
So I'm going to tell you exactly what "safe haven" they're hiding.
Why Wall Street Is Hoarding Farmland Assets
Due to population growth and rising incomes, the demand for food is steadily rising. Likewise, urbanization (particularly in the developing world) is increasing the number of people who are dependent on others to grow and produce food for them. Here are a few key numbers that might paint this picture better:
- 10 billion: The expected world population by 2050. Based on that number, food consumption will need to double by 2050, too.
- 70%: The percentage of the world's population that will be living in urban areas by 2050, according to the Food and Agriculture Organization (FAO).
- 2015: The year that China abolished its one child per family policy, which points toward huge expected population growth. In fact, births rose by 7.9% in China last year.
When you add all of those factors, it's no wonder we've seen the inflation of food outpace the Consumer Price Index (CPI) over the past six years. And there doesn't seem to be any sign of this trend stopping, either… People have to eat, in booms and busts, which makes this a recession-proof industry. That's also why Wall Street doesn't want you to know about this.
But now that you know, let's talk about how you get in on the action. As you can see below, the choices are plentiful…
But I want to get to the core of agriculture – and these are the five main methods of profiting:
- Trading Public Exchange-Traded Notes (ETNs): According to the data in the chart below, the majority of agriculture ETNs have outperformed the ETF market on average.
The one thing to keep in mind is that they lack the liquidity to trade unless you plan on being in it for the long haul. The other risk, which you can see above, is that the ETNs are specific to certain types of crops and livestock, meaning that they could carry individual commodity risk. For example, while the last 10 years have been great for the sugar industry, the cocoa industry has suffered. So your best bet here is to diversify your ETN holdings in order to curb that individual risk. By the way, you wouldn't be able to take advantage of options here, either, because these investments are not optionable.
So you'll want to speak with your financial professional to determine whether or not t…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.