Dennis Gartman: Great Year Ahead For Ag Stocks
If you’re looking to put money to work, strategic investor Dennis Gartman says the ag space looks might attractive.
“I think you can feel reasonably comfortable that America’s farmers will be flush with cash and spending money,” says Gartman.
Gartman explains that bad weather in Poland and the Ukraine appears to have damaged Europe’s winter wheat crop. And Europe’s pain may be America’s gain. “We’ve had great weather,” he adds. “That benefits America. It should be a great year for ag. I think you can go out and buy Deere or most of the ag stocks,” he says.
Largely Gartman thinks the entire space rises on the thesis.
However, if you’re looking for a little more torque, Gartman likes fertilizer names like Potash and Mosaic , the most.
These stocks have been dragged down by too much supply, he explains, and as a result were oversold.
But Gartman thinks their fortunes are about to change.
“Now, I expect a lot of that supply will be taken up by America’s and Canada’s farmers. If I had to go out and buy only one area, I would seriously take a look at fertilizers,” he says.
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CNBC.com with wires.