Agri-Food Stocks Tied to Positive China Economic Trends

By: Ned_W_Schmidt

Commodities
Best Financial Markets Analysis ArticleFor more than a decade investors have been misled. Was the misinformation intentional? Was the misinformation simply due to ineptness? Whatever the cause, the business media, the Street, and many advisors have not served investors well! This author, like many of you, has listened to countless hours of investment gurus talk. We have all read millions of words written in print about how to invest, as advised by experts. How many of them told us ten years ago that future returns in the U.S. equity market would be negative? Go ahead, name two. Not two that you read, but two that were presented by the main stream media.ur first chart this week, above, portrays the ten-year performance of $Gold and the S&P 500. That black line is the total return, including dividends on the S&P 500. Over the last ten years those that invested in U.S. stocks have lost money. They not only lost the money put into the market, they also lost the dividends received as this is a total return measure. On top of that, some were extracting a fee from the investors for losing them money. We assure you that money can be lost in the market without paying a management fee.

And then we have to hear and read the continuing blather on some bank stock that is up 500% from the low. If one had the misfortune of buying a bank stock on the advice of some investment strategist, that magnificent rise from the low is little comfort. After that 500% rise, the loss on the bank stock is only 91%. That would make me feel better. How about you? Further, the strategists applauded as hedge fun ran commodity prices up in 2008. Then, we were all told to sell commodities, forever. The Chinese economy was about to disappear, and demand for commodities would never recover. Well, we are still waiting. But, seems the Chinese economy is still in existence. Wealth is still being created in China while in the U.S. wealth may become an endangered species under the wealth confiscation policies of the failing and fading Obama Regime.