Monsanto Company (MON, quote), Mosaic Company (MOS, quote) and Potash Corporation of Saskatchewan (POT, quote) will continue to benefit from mega-trends around the globe, primarily generated from continuing growth in emerging market nations.
When growth in emerging market countries is the topic, then China is the subject. China just posted a 9.1% growth rate for the third quarter of 2011.
As shown by the recent cover of Time magazine, there is concern about a “bubble” for China’s economy. However, a report just issued by Goldman Sachs contends that China will have a “soft landing” due to inflation easing, room to borrow, a relaxed monetary policy, and the strong performance of Chinese companie in the global marketplace.
In a recent article by MSN Money columnist Jim Jubak, “Get ready for the middle-class boom,” he stated that the hundreds of millions, if not billions, around the world ascending socio-economically will be the most significant investment trend of the decades ahead. A richer diet, particularly in protein, will be the result of so many moving into the middle class.
Needed for this is more fertilizer products and better crops. Monsanto, Mosaic and PotashCorp are all global leaders. Each has a significant position in China already. The shareholders of these stocks will be grow richer along with the diet of the new middle class around the world.