Jim Rogers Still Bullish on Commodities, Bearish on the Fed

Jim Rogers, famed author of Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market and Investment Biker: Around the World with Jim Rogers, and chairman of Rogers Holdings is still bullish on commodities. The original bull on commodities has long been a staunch believer in commodities including metals, agriculture and energy and has recently launched a verbal offensive against the Federal Reserve Bank and the US Treasury for injecting so much liquidity into the market, which is often followed by higher inflation.

In an interview with Bloomberg on October 24, Jim Rogers reiterated that gold, agriculture and other commodities will continue to go up once the markets settle. Click on the video below to see his full interview.



In an interview with CNBC on October 22, Jim was specially critical of the Fed Chairman Ben Bernanke. Click on the video below to see this interview.



While I am in no position to criticise the Fed, I do believe that the government is trying very hard to prevent this recession by taking drastic steps in the form of lower interest rates, cash infusions, increased money supply and the $700 billion package for banks. Recessions are part of any economy and as such need to be embraced with positive policies that promote job growth and development. Throwing money into the system does indeed cause inflation and only delays the inevitable. In fact, in some cases, it even magnifies the recession.

As far as commodities go, it is time to buy oil, gold and agriculture. It has declined over 50% in 4 months. Gold too, is down 20% from its highs earlier this year, and agriculture stocks have been pounded up to 75%.

For those who don't have access to buy commodities, I will be publishing a list of commodity stocks to start buying soon. Stay tuned ...

Comments

[sundrenched:]

With all due respect, does anyone know of Jim Rogers' record the past 20 years? At least with the other experts, you can judge them by their track record. I do know that he was plugging Taiwan, China, and all kinds of commodities earlier this year, and that the dollar was going to collapse. I'm glad I didn't follow that advice slavishly. That said, he's definitely worth a listen, and he admits himself to being a terrible trader (i.e., market timer).

2008 Nov 13 04:02 AM

[Andy1234:]

He, like Peter Schiff, have correctly called a lot of things happening in the market....and I think they will repeatidly do so in the future.

They have sound reasoning.....and while sound reasoning may work great for long term investors....the market can act irrational in the short term. There are also small side effects that are tough to predict along the way...but their reasoning is correct for the long term.

Jim Rogers had run the Quantum fund and returned thousands of percents over a 10 or 20 yr period.....WIKI his name and it explains how well he performed in the past.

Looking forward....I believe we will hit resource constraints of some kind....food, material, energy, or clean water. I am not sure which one it will be.....and this agrees with the predictions of the club of rome. But as production continues higher for many of these materials.....the decline rates also become greater.

Its like trying to accelerate a thing with mass to the speed of light....as it gets faster and faster....and approaches the speed of light.....its energy input becomes infinite....just like production of many materials. Substitutes may or may not work......

2008 Nov 13 08:36 AM

[Errol:]

I couldn't agree more with Andy. Roger has been investing since the early 70's and took advantage of some serious commodity trends then as he as done over the past nine years. His is outlook is more long-term and admits himself that he is not the best short term trader, but I would never bet against him.

2008 Nov 13 09:24 AM

[sorgmot:]

The US$ is cascading downward against the Yen and should reach 50 Yen in 2012. The US$ is ending its uptick against the Euro and should hit should hit one half Euro in 2012.

There will be endless declines in the US$ against those two currencies as long as the USA governments take over all economic business decision making in the USA.

Guess who; just won World War II?

Good Luck.

2008 Nov 13 09:30 AM

[JohnB23:]

I follow Jim regularly. His track record over the past 20 years, I think has been spectacular. Through his books, investment biker, adventure capitalist, google news stories, other interviews (market wizards, inside the house of money), you can put together a rough picture.

How many people know..."put a significant amount of his net worth in bonds in 1981 and 82 (market wizards interview)? Was short Japan. The US media is slightly biased...sure he may have missed the 90's bull run, or internet stocks, but he was off making money in exotic countries.

And this decade, been pounding the table on china, short dollar, short i banks, long commodities, short fnm. Short term the market is extremely irrational, but long term I wouldn't bet against him.

2008 Nov 13 12:21 PM

[hownow:]

Time of riding around and holding forth wearing bow ties looking like over.

Jimmy better get his act together and save some coin.. could be a long time getting back his china/commodity investments.

2008 Nov 13 12:34 PM

[bobbobwhite:]

As with Buffett, Jim has different buying rules than the rest of us. Does anyone actualy think he goes on Scottrade and buys stocks for $7 like the rest of us? Hardly. Lots of incentives for him as ads with his name are worth big bucks to the stock bought and to him. Duh.

Beware of all bulls now as they will uncaringly lead you to the poorhouse.

2008 Nov 13 03:53 PM

[Kunst:]

Recessions are like colds. When you get one, go to bed, drink lots of fluids, and wait to get better. Our governments approach is more like taking every stimulant and cold remedy that exists -- prescription, over the counter, herbal, voodoo -- by the handful. Not likely to make you better, could make it worse. Time is the ultimate cure. It is not clear that all our efforts are better than doing nothing.

2008 Nov 13 04:57 PM

[CLH:]

Rogers is a stopped clock who is right once every 10 years. Dont listen to his out pourings.

2008 Nov 14 07:48 AM

[jockum:]

Deleveraging: So do we see a contraction of US M3, due to deleveraging? How much Gov. infusion of money can the system take without causing inflation. As much as the deleveraging?

2008 Nov 14 07:54 AM