On December 16, the Feds had finally decided to raise the interest rate after many years of 0% interest rate.
The market had widely anticipated this move and it had a huge relief rally. Many of the stocks soared on that day, except for Potash Corporation of Saskatchewan (USA) (NYSE:POT). This is indication to me that something is wrong with POT. How can the whole market move up and POT barely have any reaction. I fear that the fundamentals for POT are not strong and therefore I’m questioning my holding.
POT has dropped from around $37 in February of this year to the teens now. It seems to have fallen with the oil and commodities sectors and if it’s like the other commodities, the recovery may be slow and long.
My buy in price for POT was around $25/share and the price has dropped 30% since my purchase. I think the potash industry is suffering along with the other commodities.Therefore I’m looking to sell my holdings of POT in my DGI Portfolio.