How 'Ya Gonna Keep 'Em Down on the Farm ...

After they're seen Shanghai !!!! Mumbai !!!

I saw an ad during the weekend in the WSJ that used the Shanghai ending. I thought of the great Al Jolson performance of the song, "How 'Ya Gonna Keep 'Em Down on the Farm (After They've Seen Paree?). That song was a huge hit post World War I, referring to the millions of US farm-boy soldiers who saw Europe and Paris, France. And who would now want a life beyond outhouses, plowing fields and shoveling .... uh, manure ;-)

So now this is being played out in the emerging markets of China and India as their rural populations move to the cities for a better life.

That's the major world driving force for a secular growth story that can last many years.

This is not my original idea. I thought, however, that after last week's US markets, we need to put the world economy in perspective. I see nothing to change the secular growth story. So far.

That's one reason I like the oils & miners for long term positions. While "extended" now, I suspect eventually the beefers might provide good entries at some time if not already long.

PS: The corn & wheat plays are working out. The USDA made no significant change in the corn outlook, but took ending wheat stocks down. And weather in Ukraine is still too hot & dry. Too much "rain in the plains" for US wheat harvest, too. Some analysts think wheat end users are "short-bought" meaning they expected a seasonal decline in prices into harvest and now must scramble to get long coverage. Forecasts of hot & dry for corn growing areas are bullish for corn as every kernel is needed. Ethanol demand is very strong.

PPS: I sold my wheat longs at 582 & will look to re-enter on a chart buy on a pullback. That last spike took Dec Wheat over 580 which was the range I was looking for. Perhaps an error, but I have a huge gain. Keeping all corn.

P^3S: I read Lyndon [aka W aka Bush] got a huge ovation & acclaim in ... Albania. That's probably the only nation on Earth where he's still popular. Arrrghhhhhh. I still need to do penance somehow for supporting him over McCain in 2000.

P^4S: I just sold that S&P 500 emini position. It was just a trade & I'm tired of watching it. I would have sold at 1532, but settled for 1529 since I want to go to the barn & work with my tools. So I got about 18 pts. OK, good enough for a two day trade. Still very bullish & long.