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Friday's Hidden Trades: ETFs and Agriculture

Friday, 1 May 2009 | 4:45 PM ET

Two experts, David Lutz of Stifel Nicolaus Capital Markets, and David Kotok of Cumberland Advisors, weighed in on the best places to invest.

Lutz told CNBC’s investors to look into agriculture stocks while Kotok said investors should consider exchange-traded fund (ETFs).

Recommendations:

Lutz Likes:

Deere—“We have a “buy rating” for [Deere],” said Lutz. “Deere gets about 60 percent of its revenue from agriculture. If you have less food and higher food prices because of that, people will spend more money for agriculture equipment.”

Kotok Likes:

Rydex S&P 500—An “equal weighted S&P 500 index”

SPDR S&P 500—A “capitalization weighted S&P 500 index”

Street Smarts
An inside look at the markets, with David Lutz, Stifel Nicolaus; David Kotok, Cumberland Advisors; and CNBC's Erin Burnett.

“When the market rallied off its bottom, the market started to broaden which means that the equal weighted ETF (RSP) outperformed the cap weighted (SPY),” said Kotok.

Kotok said it is important to track the two ETFs because their action tells investors how a market is performing.

“So far, [the market] has broadened, but in the last few days, the broadening has stopped,” he said.

Disclosure:

No immediate information was available for Lutz or Kotok.

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Deere's Competitors Include:

United Technologies

Caterpillar

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Disclaimer

  Price   Change %Change
CAT
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DE
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RSP
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SPY
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UTX
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