The lackluster performance of agriculture stocks like Potash (NYSE:POT), Monsanto (NYSE:MON) and Mosaic (NYSE:MOS) confirm what most of us suspect, and that is the economy isn't growing, and the temporary and illusory effects of the government stimulus program aren't sustainable.
Agriculture stocks are one of the ways to watch to see if there is economic growth, and their performance will tell you a lot one way or the other.
What this says is there is no growth from within the companies, and that means demand for products is down, which brings us to the conclusion the economy, at best, is stagnant, and maybe even contracting some.
3 comments:
Why do you rely soley on agricultural company's on the determinant of the economy?
Jesus, easily some of the poorest analysis I've ever seen
If people can't buy bread than there is a economic and social crisis.. Thats true..
But what has do this with stocks? Stocks has always his own way of fluctuation.
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