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"One of the simplest and most genuine global long-term investment stories is the food sector," notes Yiannis Mostrous in Silk Road Investor. Here's a look at two ways to play this trend.
"Long-term, this should reward patient investors handsomely. As the world's population increases, demand will also grow, allowing companies in the food industry to handsomely profitWe continue to favor the theme and recommend you allocate some of your funds to it.
"There are myriad ways to play the burgeoning demand for vital resources used in food production. Our favorite is portfolio holding PowerShares DB Agriculture Fund (AMEX: DBA). It's an exchange traded fund that is based on the Deutsche Bank Liquid Commodity Index.
"The fund is composed of futures contracts on some of the most liquid and widely traded agricultural commodities: corn, wheat, soy beans and sugar.
"Meanwhile, among individual stocks, Syngenta (NYSE: SYT) has the No. 2 position globally in the crop protection industry with around 19% market share.
"The company is involved in the discovery, development, manufacture and marketing of a range of products designed to improve crop yields and food quality. It operates in three business segments: crop protection, seeds and plant science.
"Syngenta should also keep increasing its dividends and special cash payments and commit more funds to its share buyback program. Some analysts estimate a share buyback for 2008, which is in line with the company's cash return policy. A good long-term portfolio holding, Syngeta is a buy Syngenta up to $55."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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