With Deere & Co reporting earnings on Wednesday we can’t help but wonder if the massive run-up in ag-related stocks has run its course?
When in doubt we turn to strategic investor Dennis Gartman, author of The Gartman Letter. Following is a synopsis of his main points.
Do you expect any softness in Deere earnings?
If you go through ag country they are selling tractors, replies Gartman. Wheat prices and corn prices are at levels no farmer (or trader) thought they’d live to see. Or let me put it another way. In ag country you don’t buy a convertible, you buy a tractor!
But isn’t that all that priced into the stock?
Possibly, but I think the trend is up and I think Deere earnings on Tuesday will be spectacular, he says.
How would you play oil?
I’m flat and I’m nervous, replies Gartman. I don’t have a position on.
How about nat gas?
If you have to be long energy, I think you should be long nat gas. I like the Canadian nat gas trusts because they tend to be quieter. I own San Juan Basin San Juan Basin Royalty Trust SJT
What’s your favorite trade, right now?
I really like copper, replies Gartman.
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