Farm Equipment Looks terrible

This week in trading was terrible for the likes of Agco, John Deere and Case New Holland. I am not recommending this group at all as I believe that big equipment purchases will be delayed. If you believe the US stimulus plan will bring on heavy equipment purchases, John Deere is a better play, but in this case CAT may be a wiser choice. Keep watching crop prices, if they begin to rebound in a strong fashion, some of these plays are still good, but combines are what has been pushing these companies and these purchases can be anywhere from a quarter million to half million dollars. I believe many of these purchases will not be seen again until next year, and if this is the case might not rebound very quickly.