Our forum user DR post this article in the message board the other day, “In 60 days the mass migrations from CA begin” on dozens of communities in norther California hitting the wall with available water. From the article, ““There’s really nothing can you about it,” resident John Dougherty told CBS San Francisco. “I don’t water any plants… try to cut back on toilet usage… whatever we can do is what you gotta do… all we can do.””
This got me curious about some water related stocks so I looked to the Lindsay Corporation (Ticker LNN). Lindsay produces water management products for irrigation among other things, and they just so happened to shoot up 4% yesterday which is very telling at the gain happened among the big sell off in the stock market.
The water ETF PHO, has been pretty boring and a under performer when compared to the S&P over the years. It may be finally worth investing in water related companies now. You can see the break down in the PHO ETF here: https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=pho
I also read in the new Farmers Almanac that next year will also be hotter than normal which could effect crops.
Speaking of crops, the corn, soy and wheat ETF JJG is also bouncing off its lows. Corn prices have plummeted steady for a while now.
Current expectations for next year are that farmers will produce another record harvest. Anything less then short of that, and corn prices will likely rally especially if the dollar gets its needed correction from here.
Keep a close eye on the above developments and look to add some water companies to your portfolio, wait for a confirmed trend in soft commodities before investing.