Dec
15
Agriculture
ByThe agriculture sector, represented in the fund by the holding MOO, Market Vectors – Agribusiness ETF, has performed extremely well. On a seasonal basis the agriculture sector usually outperforms from August to December. This year the sector has performed particularly well as grains have benefited from the falling U.S. dollar, fertilizer stocks have benefited from farmers no longer on the brink of bankruptcy needing to apply fertilizer and increasing farm equipment sales.
From a technical perspective the sector has had a breakout and is expected to continue to do well. From a seasonal perspective the sector finishes its period of strength at the end of the month and investors should consider reducing or exiting their positions.
