Why Agriculture And Solar Sectors Are Strong

The markets are lower today but some sectors remain strong. The agriculture and solar sectors are particularly strong in an otherwise dismal market. Why would these sectors be so strong in the face of the markets third consecutive sell off? The answer is simple. While oil has run up and people fear the demand for goods and services may diminish, individuals still have to eat. As the worlds population continues to grow, people will continue to require food. In general, populations do not reduce their food consumption when energy spikes, instead they stop going to movies, buying TV’s and having parties. For good reason then, after a sell off over the last few days, agriculture stocks are finding support.  Stocks like Potash Corp./Saskatchewan (NYSE:POT) hit a low yesterday of $163.23 before rallying back to its current level at $172.25. The same type of move was seen in The Mosaic Company (NYSE:MOS).

While agriculture stocks have bounced sharply in the last day, solar stocks have remained extremely strong as well. First Solar, Inc. (NASDAQ:FSLR) is trading at $165.44, +2.42 (+1.48%) while the overall market is at the lows of the day. The reason why solar is so strong is purely because it is an alternative to oil. As oil goes higher, alternate energies like solar are cheaper in relative terms. This means more people will consider installing solar instead of spending so much money on oil and gas.

Always look at the whole picture when it comes to one commodity. There are usually many angles to view in order to make the maximum amount of money possible.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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