Rural Stocks Make the Big Comeback

[imgbelt img=DY40March.jpg]Rural stocks get back to pre-recession prices while Dow Jones Industrials and Standard and Poor’s 500 continue to lag.


introduced the Daily Yonder 40, an index of 40 stocks picked to reflect the rural economy. We thought it might be interesting to see how a list of rural-based firms fared against other major stock indices, such as the Dow Industrials and the Standard and Poor 500.

As the country fell into recession, beginning in December 2007, our 40 companies found their stocks dropping. By the first week of March 2009, the value of the 40 stocks in the Yonder index had dropped by 50 percent.

This past week, the DY 40 index got back to where it was when it started. Nearly three years after it began, the Yonder 40 is back to even, a value it last reached in June 2008.

The Dow and the S&P 500 aren’t even close.

On July 1, 2007, we introduced the DY 40, publicly traded stocks that did much of their business in rural America. We included Wal-Mart and the company that owned the Grand Ole Opry (Gaylord Entertainment). We included a rural newspaper company (Lee Enterprises), a rural telephone company (FairPoint Communications) and rural manufacturers (Mohawk and Bassett Furniture).

Of course we included agriculture-related companies, from Monsanto to Deere to Tyson to companies dealing in tobacco. And we included energy producers — oil, gas and coal.