Investors are said to be in rotation as they switch money out of momentum stocks like high tech and the Nasdaq and switch to value companies likely to benefit from the economic rebound. However, some say the market is “broadening” since disruptive technologies remain a valuable investment. There is a seasonal rotation in agriculture, with South American crops coming online there is typically a shift in values but because of tighter supplies, there is also a broadening in commodities. However, there is still a large risk to U.S. commodities. The American economy is leading a global rebound, this is pushing bond rates higher in anticipation of inflation and concurrent higher interest rates. The dollar has dropped in value t...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.