February 10, 2022, 11:09 am EST
Inflation and Agriculture Stocks
When inflation is getting intensified to the 40 years high that the latest CPI shows 7.5%, we see commodity stocks keep going up. Specifically, agriculture stocks are our favorite categories. The reason is very simple. Everyone needs food to survive on daily basis.
Here are some various agriculture-related stocks that are doing well for this reason:
- Fertilizer: MOS, CF
- Seed, Crop Protection: CTVA, FMC
- Farming Equipment: DE
Just like gasoline prices are up, food prices keep climbing to higher levels globally with the inflation threat. It is highly possible that the inflation problem is going to get worse for months to come. Thus, owning agriculture stocks may provide a way to benefit from this environment.