Jim Rogers is a legend in the investment world, and if there is one person to listen to, it is him. So what has Rogers been doing?
Rogers remain broadly bullish on commodities for the long term, he told CNBC:
I'm long commodities and currencies, because if the world gets better, the shortages in commodities will make sure I make money; if the world economy doesn't get better, I'd rather own commodities because they're going to print money.
Rogers is long both gold and silver, but is expecting a correction in the short term:
Somewhere down the line gold will have a correction. Gold will continue to do what gold does best. Just give it a chance. I'd probably get more interested at $1,600. At $1,710 or whatever it is today, I'm not buying gold, I'm just watching. And likewise for silver.
Rogers has been bullish gold for a very long time, and has been correct. While he is still bullish on gold and silver, Rogers is more bullish on another commodity: food. Via his blog:
I suspect agriculture products would give better protection during the next several years although gold and silver will be good too – perhaps second best.
Though bearish on the U.S dollar in the long term, Rogers is buying the dollar right now (from CNBC):
I own the dollar, I own some other currencies as well, a year ago everybody was pessimistic about the dollar, including me…when everybody is on the same side of the boat, you go to the other side of the boat for a while.
Rogers is also buying some other currencies, including the Chinese renmimbi, Japanese yen, and Swedish krona. In terms of stocks, Rogers is largely bearish:
Stocks, in my view, in most countries are like they were in the 1970s. In the 1970s stock markets, and economies around the world did not do very much and were in a big sideways trading range for many years. We are in that kind of period now. [China Money Podcast]
I mainly short shares around the world. I have shorted American technology companies, I have shorted European stocks and shorted emerging market stocks. [Rogers blog]
One stock market that Rogers is more bullish on is the Japanese market. From his blog:
They will soon start losing money on the money invested abroad so a massive amount of that money is going to come back home. I doubt that will go into bank deposits or bonds because interest rates are so low. Then at least they can go to commodities or stocks.
How to position yourself like Jim Rogers:
- Buy the U.S dollar for the short term (UUP)
- Own gold (GLD) and silver (SLV)
- Own agriculture commodities (DAG, DBA, CORN)
- Own Japan (FXY, EWJ)
- Own the Swedish krona (FXS)
- Own the Chinese yuan (CYB)
- Short U.S Stocks (Sell SPY short, or buy SH)
- Short Europe Stocks (Sell VGK short)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.