Jim Rogers Speaks Out - Where Is He Putting His Money? 31 comments
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In an interview with CNBC this morning, "adventure investor" Jim Rogers spoke about the current crisis, saying that eventually the banks and businesses that are sound will take over access from those that are unsound, "and then we will start over."
Asked why markets have not responded to government efforts, Rogers said,
Mr. Paulson, Mr. Bernanke, that guy at the New York Fed Ken something, every week they have been dead wrong. Why would you listen to them? I wouldn't listen to them.
Where is he putting his own money?
I have an enormous amount of cash, I've been using it to buy more Japanese yen, more Swiss francs, more agricultural products ... and I've covered a few shorts.
Is there a level at which he would buy equities?
I'm not sure I'm going to buy equities, when the market caves in I'm not sure equities are going to come out on top. When you have a panic, you buy the things where the fundamentals have been unimpeded. Morgan Stanley (MS) is not coming out of this unimpeded. ...
Right now everything is being liquidated, everything. In a period like this, the way you make money coming out of it is to own the things where the fundamentals have not been unimpaired. Commodities are the only things I know that are unimpaired [though] supply and demand are still terribly out of balance.
You can watch the video of the interview here.
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This article has 31 comments:
He took his family and all his money and moved it to Singapore.
Forbes Jan 7, 2008
"In fact, the 65-year-old former investment partner of George Soros and globe-circling author of Investment Biker is such a believer in the capitalist momentum of the People's Republic that he recently agreed to sell his beloved home and relocate full-time to Singapore - not quite Shanghai, but close enough to the action. It's something he's been considering at least since 2004"
"In my view, the U.S. economy is in recession. I know the government says we're not. But as I look around, we know that automobiles are in worse than recession. The same thing is true for homebuilders. Much of the financial sector is in worse than recession. So many parts of America are in worse than recession, and yet the government says we're not in a recession. I don't know what's so strong that it's offsetting these major weaknesses in the American economy. I just assume that the government is lying."
"I am still short Citigroup. I'm still short Fannie Mae. I'm still short homebuilders. And I just increased my short positions on the investment banks last week, because that's where the excesses have been in the U.S. economy. There have not been excesses in sugar farming in the past 30 years. There have not been excesses in silver mining. The excesses have been on Wall Street. That's why I'm shorting Wall Street. You see 29-year-old kids making $10 million or $20 million a year and thinking, "This is the way the world is. This is normal." Well, I don't think it's normal."
He said all this back in January 2008. I guess maybe Jim Rogers might know a thing or two.
Trust your instincts and get in on gold and profit from this 40$- drop today... massive Commodity Exchange default YET it's dropping? Same applies for Silver. Trust me... bullions none fo that non-deliverable ETF gold!
mining101.blogspot.com
Sure, short term deflation, but the secular long term inflation trend is still intact.
A retracement was due but it's probable that after a bit of a drop to gather itself it will resume the uptrend and challenge the 1000 mark again. Give it a few weeks to re-organize and settle down.
I managed to hedge my GLD calls by selling some higher strike calls and locking in most of my profits mid-morning today. Several hours later GLD started dropping. I was lucky. Even if GLD goes to zero I will come out ahead now so I'm just waiting for a good spot to get long again.
Mostly I didn't want to go into the weekend long gold with the G-7 meeting going on. No telling what they're going to do or how it will impact gold prices. Expect anything.
When it appears the uptrend is resuming I will buy those hedge calls back (at a profit I hope) and ride the original calls further up with the rally.
Have patience. The rally will resume eventually.
Jim was recently quoted at the annual CFA dinner in Toronto as suggesting to the assembled investment bankers that they “sell their houses in the city, move to Saskatchewan, buy tractors and farmland and start farming.” Jim feels that western Canada is now one of the best places in the world to invest and is well positioned to weather any problems in the global markets.
Dont worry you will when its too late!
Noworries.
In the recent deflation / unwinding / panic, everything is being sold indiscriminately. Big players must have cash now, or they go bankrupt. The selling doesn't mean the asset has lost real value, it just means the mass of sellers are desperate for cash so they don't go under.
I long predicted hyperinflationary collapse, since about 2003, when I bought into gold, and I was certainly not the only one. I am, so far, dead wrong (about the hyperinflation), and I now highly respect Mish. But the game is not over yet. So far, Bernanke has been trying to fix credit quality, rather than directly reinflate. Now it looks like massive reinflation has just started.
Price inflation will not be felt until the credit markets unsieze. That could be a while yet.
Everyone is piling into the USD. If the USD collapses rapidly, a distinct possibility as currencies move very very rapidly, it will be a simply nauseous, disasterous, suicidal time. In this highly risky time, people want to get out at the top, and once the big big players start moving for the exits, the slide will be enormous. This has been talked about ad nauseum for at least 5 years now, so no one can say they were not warned.
Don't try to play the wave. Get into the things that will survive the long run, like Jim Rogers says, things unimpaired. Get into gold if you're not smart enough to figure out what other things are valuable.
Hes an idiot.
I frankly do not understand how commodities go up now but I have ignored him before and he has been right. So I am going to pay attention to what he says now.
You gotta listen to him, though its not easy when he calls Bernanke and gang clowns ( but honestly tell me if you have not had that thought yourself? ) He has good points but I just wish he talked everything in a more sensible way.
He has been pushing Agriculture now and I have no clue about it.
But I do believe Copper and other industrial metals are done for at least a while, though they might rebound now after the crash.
There is a big difference between down and impaired, in a "forced selling" environment commodities are down with everything else but they are not impaired. The market for them will not vanish. Impaired means that it no longer has the means to recover its former condition. Enron was impaired. Gold is fluctuating.
In the 87' crash, commodities tanked with everything else. The VIX, contrary to what is bandied about in the Media as being at an all time high, spiked to 1.75 on that day. A 1000 point Down day may produce a new all time high.
He moved to Singapore instead of China because even he had to admit that the environment in China was substandard; so much for his adventure, huh? His move coincided with a 60% plunge in the Shanghai Index ($SSEC). Raytayzmd said it well here.
Wake up America. There is such a thing as right and wrong, good and bad. These things are non-negotiable and do not change just because the gov't will lower your interest rate or eat your bad debt (all of which is grossly uncapitalistic and un-Freaking-American).
Jim Rogers strikes again. The tigers ought to make him move to where he can't hurt anything, like Cambodia. NIMBY!
Agcapita Farmland Investment Partnership
Agrifirma Brazil