The Secret of Money-Doublers They Don’t Want You to Know
#1 PowerShares DB Agriculture Fund (DBA) LEAPs
By Chris Johnson and Jon Lewis
Few things appear to be a lock over the next year. However, one thing that most investors accept as a given is the return of inflationary pressures
to the market in 2010. In 2008, investors on the ball were able to profit from the inflation
play in food prices by investing in the PowerShares DB Agriculture Fund (DBA). It’s time
for a repeat performance.
DBA offers a vehicle to participate in the agriculture futures market via a single vehicle, representing a basket of widely traded wheat, corn,
soybean and sugar futures. After peaking in popularity and price at almost $44 in early 2008, DBA was cut in half in the latter half of 2008, as the “crowd” rushed
out of this sector. Currently, DBA presents a neglected investment alternative, just as some fundamental aspects of the agriculture trade may be ready
to kick back into high gear.
Demand for agricultural products is not likely to ebb as the global population grows. In addition, cooler and wet weather in the Midwest caused
late harvests, meaning that winter wheat production will be less than expected. The slightest tip in the balance of supply will likely cause investors
to rush back into the food inflation play. Go long DBA with January 2011 LEAPs, which have potential for long-term triple-digit gains.







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