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To: h20skier66; Petronski
Time to Invest in Food?

Gee, I don't know. Hmmm, I wonder what how Commodity News Center will answer that tricky question.

The Agri-Food investment story has been unfolding for more than three years, and has another ten or so years to go.

Hmmm, slow writers.

For that reason, investors still have plenty of time to uncover the opportunities for profits in a world soon to be far more hungry.

Well, thank God for that! We'll all be starving, but we will have plenty of opportunities for profits! (Hmm, I wonder who will broker these amazing profits? I can't imagine.....)

Agri-Food cannot be produced in factories with lower marginal costs for new production. Unlike consumer electronics, marginal production will have a higher cost.

Always open with a little double-talk. You can't go wrong.

For centuries mankind has sought to satisfy hunger.

Wow, that is some, um, amazing writing. Where ever does the author get his insights?

Only in the second half of the 19th century did food become more plentiful with improved availability. Yet even after that period food was not adequate in all countries. The Russian grain purchases of the 1970s were the first time in Russian history when a food shortage was not satisfied by starvation.

Satisfaction by starvation. Interesting concept. Please, do go on.

China has uncovered a far more humane and far more successful approach to hunger. For you see, hunger is not a food problem. Hunger is an income problem. China has discovered the secret to feeding its people. Give them jobs that produce incomes, and they will simply buy the food. As we can observe in the chart below, those in front of that spending have benefitted.

Always write about China. Throw in some factoids. Too far away to fact-check and makes you look smart.

Usually when we visit, the fundamentals are the starting place. After that, we normally turn to what the investments might have been doing. This week we decided to reverse the process. In the first chart above are the estimated returns on a basket of Agri-Food stocks. Note that the one year and two year estimates are from the end of October in the respective years so the time periods are not quite as stated, but the message is the same.

(Excerpt) Read more at commoditynewscenter.com ...

Oh, no! A cliffhanger! Gee, now I'll have to click on the link to commoditynewscenter to find out where commoditynewscenter thinks we should invest. And if the link is broken, I'll never know! Oh, the horror!

6 posted on 10/22/2009 3:01:10 PM PDT by Larry Lucido (This tagline excerpted. To read more, click on MyOverratedBlog.com)
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To: Larry Lucido
Always write about China. Throw in some factoids. Too far away to fact-check and makes you look smart.

Why didn't someone tell me that when I was a kid?

"Eat your spinach. It has lots of iron, like Superman. Don't you know there are millions of starving children in China?"

9 posted on 10/22/2009 3:15:16 PM PDT by meadsjn
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