The following article is from www.indiadaily.com
A great investment now is anything that replaces crude oil through ethanol production – what are these long-term best investment choices? Karen Zuba Feb. 20, 2007
Not many long-term good investments are left. Deflation will eventually affect all. However to sectors are clear winners in the next few decades – food and energy. Interestingly, both are now inter-related. As energy prices go up so will food price. Let us explain why?
Ethanol is replacing crude oil derivatives. It is cleaner and perhaps will be cheaper as technology of Ethanol manufacturing gets better.
Ethanol is produced from sugar or anything that has some kind of glucose. These include all grains, plants and so on. But for now ethanol will be produced primarily from sugar and corn. Brazil is focusing on sugar and in America there are zillion corn based Ethanol production plants are being built. All grain prices will go up. All meat prices will go because they need grain as feeds. Sugar prices will also go up.
Interestingly, crude oil price may go down as ethanol replaces crude oil.
Smart investors are using corn and sugar futures like a hedge in their portfolio. These are gold for the next several decades.
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