The financial crisis is likely to lead to food shortages in a few years because the agriculture sector is in dire need of funds, legendary investor Jim Rogers told CNBC Friday.
Buying distressed commodities is a better way to make money than investing in stocks, according to Rogers.
"The fundamentals (for agriculture) have gotten better," he said. "The inventories are now at the lowest they've been in decades, not in years."
"Sometimes in the next few years we're going to have very serious shortages of food everywhere in the world and prices are going to go through the roof."
Cotton and coffee are good buys because they are very distressed, while sugar, despite the fact that it has gone up a lot, is still down 70 percent from its all-time high, according to Rogers.
If there is a possible food shortage on the horizon, that means that the suply of food is way less than the demand. This is not a good scenario to have rising as many people are already struggling to make mins meat and if food became too expensive, starvation will follow. Do you think people should turn their attention to investing in commodities for farmers right now or in other businesses?
Stocks have not been doing so well; therefore investing in commodities for farmers wouldn’t be such a bad idea. Even though the economy is not doing so well, there will always be a demand for food because humanity needs the product in order to survive. Once supply of food is way less than the demand then people are going to begin buying the cheap goods and that is where the people who invested on commodities for farmers are going to benefit. E.A
ReplyDeleteI agree with Dulce that investing in commodities would be a good idea. Food is necessary to life so investing in something that everyone needs is a good idea. There isn't a particular group you're selling to so the possibilities are endless. A, E
ReplyDeleteI think that people need to start realizing that we need to organize our food system to not produce so much in surplus. it is silly that we hold back food that could get traded fairly to help countries in need now just because we are speculating on potential astronomical profit in the future. everyone has a right to adequate nutrition.
ReplyDeleteIt's hard to imagine serious shortages of food all over the world, since there are all kinds of agriculture products and there should be some ways to find the substitute goods. But maybe investing in commodities for farmers (especially those main products) is a reasonable choice, not sure, perhaps depending on each country's specific situation.
ReplyDeleteA solid investment would be not only food, but the research into the development of ways to grow food with less water, in more extreme temperatures, and just generally larger and faster. As highly questionable as these practices can be (and especially the companies behind them), it may help dull the potentially massive effect of global climate change. (A)
ReplyDeleteI find it difficult to believe that there could be a worldwide food shortage within a few years given that there are nations, like our own country, which have enough food that they are able to export it to other nations.However, I do agree that if there were to be an international food shortage it would be wrong for our nation to accumulate food stores to make a profit at the expense of others.
ReplyDeleteI believe that investing in commodities for farmers would be a smart choice. You think about it, everyone needs food to survive. Jim Rogers said that in a few years there will be food shortages. That means that food will be scarce and because food is a necessity, the demand for it will be even higher than it usually is. Because it is a necessity, the suppliers, in this case, the farmers can jack up the price because people are going to be desperate and buy food at abnormally higher prices in order to ensure their food security. If what Rogers said turns out to be true, you will make a good profit if you invest in commodities for farmers because people will be in panic mode, and pay irrational amounts in order to keep food on their tables. This will lead to a nice return on your investment. (A)
ReplyDeleteWhat is the cause of this soon-to-be food shortage? I believe that this is a big maybe considering the surplus of food that we have here in the states. This shortage is one that I feel is unlikely to take place anytime soon.
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