Market Outlook: Trouble Down On The Farm

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Trouble may be brewing down on the farm for the stock market.  Agriculture companies have collectively seen their share prices steadily rise over the last two years, but underlying agricultural commodities prices have been steadily falling over much of the same time period.  Although such disconnects are not uncommon over short-term periods of time, this divergence is not likely to continue into long-term.  As a result, something has to give.  Agricultural commodities prices will soon need to rise sharply to catch up.  Otherwise, agriculture stocks are likely to face increasing pressure to the downside.  And if agriculture stocks end up breaking to the downside, the broader stock market may soon follow.

Please click on the link to read more of my article on Seeking Alpha.

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

 

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