Ag.com vs Tech.com

The International Herald Tribune quotes Tobias Levkovich, Chief equity strategist for City group Investment Research in reference to his analysis of the agricultural equities as saying:

"Some of these stocks are up 15-fold in the last couple of years, and people are saying they look cheap," he said, referring to commodity producers. "We're telling people to move away from these stocks." to read more

This is a Deja vue. Only 8 years ago the tech bubble burst and how quickly do people forget the "irrational exuberance of those days" and the carnage that followed.

I am sure many Canadians remember Nortel Networks or is it Nortel Who?

Many other Canadians also remember Ross Healey calling the top on Nortel and yet they shrugged him off. Turns out those who listened saved their hide and hold a lot of respect for the man including yours truly.

The Ag bubble will burst like any other bubble. A lot of people will either praise Tobias Levkovich for his foresight or hate him for having burst their bubble. While they are at it, they might as well blame him for the housing bubble, which incidently also burst.

If I were thinking of buying and holding some of these stocks I would absolutely stay away. However, if I am a trader, the price movements of some of these stocks represent excellent opportunities for quick returns. But you won't catch me holding those stocks overnight.