"We think we've seen the worst and will likely see some improvement in the economy going forward," says growth stock specialist Harry Domash, editor of Winning Investing.
Among his buy recommendations, the advisor looks at two agriculture plays: Agrium (NYSE: AGU), a producer of fertilizers, and the diversified exchange-traded fund, PowerShares DB Commodity (ASE: DBC).
"Headquartered in Calgary, Alberta, Agrium is a major North American producer and marketer of fertilizers. Agrium operates plants in Canada, the U.S., and in Argentina. Its major product is nitrogen fertilizer but it also makes potash and phosphate products.
"Agrium sells to wholesalers and through more than 800 company-owned retail stores in the U.S., Canada, and South America. Its stores also sell seed and other farm supplies.
"Agrium just recently completed its acquisition of UAP Holding, which had operated 370 distribution and storage facilities North America. Everything related to agriculture is booming, and Agrium, not counting its UAP acquisition, is growing sales around 30% annually.
"Counting UAP, analysts expect sales to double and 53% earnings growth this year. Agrium is profitable, has $1.8 billion in the bank, and is cash flow positive. The stock is a buy in the growth section of our portfolio. Buy to hold for 12 to 18 months.
"The PowerShares DB Commodity Index Tracking ETF tracks the prices of crude oil, heating oil, aluminum, gold, wheat and corn, and is a buy for more speculative investors.
"PowerShares believes that tracking those items adequately reflects the market at lower cost than if it tracked the more than two-dozen actual commodities. Recently, commodities, which include energy and agricultural products, industrial and precious metals, and livestock, have gone through the roof.
"Some experts believe that they've already overshot on the upside, and are due for a fall. However, others, pointing to the growing economies in China, India, Brazil, and other emerging countries, say commodity prices can only head higher.
"If you agree with the latter view, PS Commodity, an exchange-traded fund that trades just like a stock, gives you a way to profit from rising commodity prices. Commodities are notoriously risky, so invest only speculative money here."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
