Sell Alert
E-TRACS UBS Bloomberg CMCI Food Total Return ETN (FUD)
from $100k Portfolio, recommended at $30 on September 19, 2012.
I like the agriculture business, and believe that a growing world population and shrinking arable farmland makes this sector attractive for the long term. For that reason, I plan to add exposure to agriculture in the future.
However, the two ETFs that we own for agriculture exposure aren’t helping our current portfolio performance.
The UBS E-TRACS CMCI Food Total Return ETN (FUD) [has] struggled since we added it to the portfolio. Crops such as corn, soybeans and orange juice have been on a steady decline for months, dragging these indexes down an average of 9% this year.
Fertilizer stocks such as Mosaic (MOS) and Potash (POT) are slumping too.As the world’s population expands, the agriculture industry will eventually recover. With more than seven billion mouths to feed, farms will remain an integral part of the global marketplace. Right now, however, agriculture stocks are trending the wrong way — and the ETFs that track them can’t keep their heads above water. ... Suggested Action: Sell FUD.
Ian Wyatt, Ian Wyatt’s $100k Portfolio, www.100kportfolio.com, 866-447-8625, August 12, 2013