Jim Rogers, the famous investor, loves commodities. He is very long on real raw materials and natural resources. He also likes things like food. Rogers is convinced that these things will go up in value over time.
If you want to invest in stocks that have a very good outlook for the future, buy ones that are in these commodity sectors. Wall Street is already doing this. They are buying up agricultural infrastructure, like grain silos.
They see big money in farming. In fact, because of rising world food prices, US farmers are seeing really good income for the first time in decades. This is just a sign of the times that are coming.
It’s a fact that the world is becoming larger. We just hit 7 billion population. It won’t take long for the number to double. It probably will in my generation. That will mean more mouths to feed, more stuff to consume and more energy to run our lives. That is just simple math.
As this happens, the price of commodities will skyrocket. You can invest in stocks, gold or paper. But at the end of the day, the only things with real value is real stuff. I’m talking about things you can eat, wear and drive.
No matter how bad the economy gets, there are some things that we will always need. These are the sectors you want to invest in. These are actually the best stocks to buy now because the demand will get bigger, whether the economy does well or not.
Of course, if the global economy recovers and starts to grow, demand will go up even more. But even if it doesn’t, the trend looks like it’s still up over the long run.
We will always need energy and we will always need food. This is not an economic issue. It’s a social one. You see, we just hit the 7 billion mark in population. Do you think this is going to go down at any point? In fact, it will only accelerate. As it does, we will need more oil and more food.
That is why it may be a good time to buy stocks in these sectors. Oil companies like Exxon Mobil and Chevron will always have a growing market. Food companies and agricultural stocks will also do well as well. You can look at a stock like Potash that does fertilizers as a good play.