New York, New York (PressExposure) February 17, 2012 -- Danny Esposito, co-editor of financial web site and newsletter Penny Stock Detectives, believes India's recent purchase of farmland in Africa and China's recent purchase of 1.4 million acres in Venezuela are just the beginning of a rise in commodities, as both countries secure agricultural commodities for the future.
According to Esposito, there are compelling entrenched trends in place that make owning agricultural commodities in 2012 essential to every portfolio:
1. Expanding middle class in emerging markets (China, India)
2. Growing worldwide population
3. Bizarre weather patterns
"As the economies in Asia continue to develop, a middle class is quickly emerging. These wealthier people are changing their eating habits to match those of the West; demanding more agricultural commodities," noted Esposito.
Esposito notes that with over 1.3 billion people in China and over 1.2 billion in India, and farmland scarce, both countries are in a mad race to secure farmland, and they'll be buying in 2012. Esposito believes this will drive up agricultural commodity prices.
On the second point, the growing worldwide population, Esposito says, "In the 1950s, there were over 2.5 billion people on this planet. In 2012, we will exceed seven billion people. The U.S. Census Bureau estimates that, in just 13 short years, our population could reach eight billion people!"
Esposito believes the bizarre weather patterns and the increased frequency of droughts, floods, and storms will damage crops and farmland around the world.
According to Esposito, there are many countries in Asia that are not going to be considered "emerging" for very much longer. As a consequence, the wealthier middle class is going to demand homes and other luxuries.
Esposito argues, "With that advancement naturally comes a change in eating habits and in the foods desired. Where at one time meat was considered an expensive luxury, it is now an affordable part of their daily diet. Couple this with world population growth, which will exceed seven billion this year, and you have the perfect backdrop for a continued rise in agricultural commodities."
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