A growing global population has stock traders looking to agribusiness as the next hot investment sector.
“With an estimated 9.2 billion mouths to feed by 2050, up from 6.8 billion now, and growing demand from wealthier emerging-market consumers for a high-protein diet, the challenge of feeding the world looks daunting,” says the Wall Street Journal. “In theory, that should provide a huge secular boost to agribusiness stocks over the coming years. But it will still require investors to have an appetite for risk.”
That’s because certain ag sectors are incredibly volatile and unpredictable. Meanwhile, farmers still face a credit crunch and a rocky banking and financial industry recovery.
Therefore, while the future holds promise for agribusiness holdings, investors had better be in it for the long haul to realize their best returns. Just like farmers.
Source: Wall Street Journal