This morning on Squawk Box (CNBC, Swens favorite channel), Jon Najarian from Option Monster.com (who is also on Fast Money), at 7:55 gave his favorite ETF play. He reported the ETF… MOO. This company has a position in John Deere and Monsanto.
From listening to the news there is geopolitical stress in Pakistan. Art Cash (from CNBC) reported that “Russia is flexing its muscles”. The basic thought here is oil. China is going to have to import more oil, and the price per gallon is increasing. Market pre-open (1/2/08) it was up $2 dollars or at $98 dollars per barrel.
Now with the desire to go GREEN, I also think that agriculture could be a good position. Hey, I’m writing about Alternative Energy and I’m talking corn and soybeans? Well, all the people in China are going to have to eat (and us too). On the campaign trail there has been talk about energy independence in 10 years. HOw are we going to get there? Swen thinks Biomass could be a reasonable alterative. Fuel is being produced (from corn) in Wisconsin or Iowa, and exports (agriculture) are expected to rise (hence position in John Deere and Monsanto).
