With a global sense of re-flation appearing in equity and bond markets, noticeably lagging today...


With a global sense of re-flation appearing in equity and bond markets, noticeably lagging today is anything agriculture related (DBA, MOO). But agribusiness might come back strong, on a lagged response to the feeling that the end of the world isn't here after all, Europe has kicked the can down the road, and demand for food increases. Ag-flation anyone? (submitted by Michael Gayed)
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  • WatchTheVix
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    I believe in the reflation of necessities - food, WATER, oil - in fact I think it a safer trade to diversify gold,precious and industrial metal positions with "real needs" in short supply.However our Government may be capable of pulling the rug out from that trade..... also we may have Political strife with China and Emerging Economies over food inflation - rare earth for food anyone? Hedge funds that do not consider the risk of repatriation of farmland they have purchased from hungry countries is not doing their homework. Of course alternative trades have the concerns of counterparty risks – especially with the ETN's. One must choose the lesser of the evils – futures and contracts or ETN's and an ETF's with counterparty risk. It is a difficult trade to be sure but one over the next five years that should be rewarding. Curious – your opinion on MLPs? Heavy debt for an era of heightened borrowing costs. What do you see as the best play for Aggie inflation? Kind Regards, Vicky Van Vliet VickyVanVliet@Gmail.com
    31 Jan 2012, 11:35 PM Reply Like
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