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Talking Turkey on Agriculture Trends

November 20th, 2009 Michael McDonough

An excerpt from today’s column on RealMoney…

“In tune with the Thanksgiving spirit–eating–I want to discuss a budding topic that’s garnering more attention lately from a growing number of my clients: food, or more specifically, agriculture. There are many ways to tackle this topic, but what I wanted to highlight today is the growing caloric intake of the developing world, especially China.

Developing-world diets have started a path of convergence with their developed-world counterparts, meaning that as disposable incomes within these countries have risen, consumers have begun to demand more complex proteins: meat. To help put this into perspective, if the present trend were to continue and if Chinese and Indian meat consumption were to converge with that of the U.S., global caloric intake could double by 2050.”

I go on to recommend the ETF DBA as a good play on this theme as well as a good hedge against inflation.  Please see the entire column here.

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