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Featured Advisor



Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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World Food Supply Faces Shortages

The price of food commodities such as corn, wheat and rice have all increased dramatically in the last twelve months. While these trends have been positive for the U.S. farmer, they have led to dramatic consequences around the world.

According to USA Today, in the U.S. about 9% of our income goes to food with another 3% used for dining out. In emerging markets, 50% of income goes to food. This is not because the food is so expensive but because the incomes are still so low. Therefore when food prices increase dramatically, as they have in the past year, families learn to live on less. Living on less doesn't mean not eating out or reducing movies and fun activities...it means living on less food...fewer meals...something we rarely experience in the U.S.

The World Bank's Food Index soared to 29% in January, just 3% lower than its peak in 2008.

Experts attribute the increasing food shortages to the following:

• Weather related issues.
• Speculation. The futures market can cause the cost of food to rise.
• Energy Costs. The rising price of oil makes it more expensive to deliver food to the end distribution cycle, thus increasing the price.
• Trade Restrictions.
• Growing Population.
• Increasing affluence in population. This creates a greater interest in more expensive food products such as meat.


The vendor in Tunisia who set himself on fire ultimately leading to the revolution in Egypt wasn't demanding freedom...he was demanding the ability to make enough money to pay for food for his family.

A USA Today/Gallup poll found the 59% of Americans supported cutting foreign aid from the budget deficit, but it represents less than 1% of the overall budget.

Clearly the world food supply should be a critical issue to pay close attention to in the next 12 months and thereafter.