ISHARES GLOBAL AGRI INDEX ETF (COW.TO)

(Top Pick Feb 14/13, Up 12.49%) World’s population is about 7.1 billion and farm land is being eaten up. The world is getting more of an appetite for protein and extreme weather is wreaking more and more havoc on farm land.

Switching from iShares Agriculture ETF (COW-T) to Potash (POT-T)? Cow has 7%-8% of Potash in it along with a lot of other companies. You are going to have a lot of risk going from a diversified basket of stocks over to one single stock. However, he thinks there is a little bit of move now on Potash. Chinese have stopped their 1^st quarter buying and he thinks there is a little bit of a bottom on potash prices. The company is doing well. 4.5% yield. Kind of likes Potash here, but wouldn’t be prepared to give up the diversified basket.

Likes this, because it is basically feed and seed. If you like the ideas of global agriculture, by all means, pick some of this up. It’s a good ETF.

iShares Global Agriculture (COW-T) or Potash Corp (POT-T)? The potash situation is nowhere near being solved. The oligopoly in Russia is still a disaster. There are not a lot of people buying potash, possibly waiting for it to hit bottom, but who knows when that is going to happen. Potash is about 7% of this ETF.

What Canadian ETF would you use to play the agricultural seasonality? He would have to use this one. There is a lot of Potash (POT-T) and Agrium (AGU-T) in this as well as Mosaic (MOS-N) and seed manufacturers. The sector has been hurt somewhat. We know that in the springtime, this sector does not do all that well but he would be a buyer. Also, feels that Agrium would be a great Buy at the current price.

(A Top Pick Oct 31/12. Down 5.16%.) This trade lasts from August to the end of the year. This time it ran further and into January and did quite well.

Has done quite well over the past 3-5 months and he thinks it will continue to. The thesis is unchanged. World’s urbanizing and farmland is being eaten up and population is over 7 billion. We have to feed more people with less good farmland.

Agricultural sector. It is overbought. Don’t chase it here. If we get a hiccup in the markets in Mid Feb, it could go down and re-test the breakout from earlier. If you use momentum style and go in here, put stops in because it will come back down parabolically.

Agriculture does extremely well from the beginning of August until the end of the year. On average it has been up 15.5% since 1994 and has been up 82% of the time.