cutting its bank reserve requirements
and lenders ready to rush into the markets with new money,
we're due for a sector rotation. Get ready to buy commodities,
and keep a lookout for the ripple effects that come with demand
for agriculture and metals.
Here's a case in point. Israel Chemicals Ltd. (
), extracts minerals from the Dead Sea to make fertilizer and
potash. Bloomberg reported last week that
ISCHY has been on its biggest bull run in two
The reason for the gain? Speculation that price rises in
corn and wheat will fuel demand for fertilizers.
"ICL is rising because the price of corn, wheat and soy rose
last week," Psagot Investment House analyst Ilanit Sherf
said. "The price rises indicate that farmers will be willing to
buy more fertilizers and pay more for them."
Shares of Israel Corp. -- which holds a 52% stake in Israel
Chemicals according to data compiled by Bloomberg -- have also
been surging, proving that sometimes even the ripple effects have