Wednesday, November 25, 2015

Jim Rogers thinks oil may be in a bottoming process

"I guess I would buy agriculture with both feet, energy with a toe and watch the others."

Question: What would you say to an investor now who has little to no exposure in commodities and sees that most assets have been beaten down. What types of commodities do you think have the best potential now going forward?

Jim Rogers: I would say agriculture through the ( RJA ) [Elements Rogers International Commodity Agriculture ETN]. It is amazing how low some of these agricultural prices are. The average age of American farmers is 58 now. The average age in Japan is 66. There are more people in America who study public relations than study agriculture. It has been a nightmare industry for a long time and that’s got to change. I would certainly buy agriculture. [Rogers designed the index that RJA tracks.]

Question: What about other commodities?

Jim Rogers: I would probably start to buy oil in a small way, energy in a small way. I think it may be at the bottom, but since I don’t have much confidence in my convictions right now, I want to see more. There is a lot of bad news that keeps coming out about energy and yet the prices don’t go down. Historically, I have noticed that if something is going up and good news comes out and it doesn’t keep going up it usually means the top is being set. Likewise if something is going down, and bad news comes out and it doesn’t continue to go down, it usually means we are making a bottom, so I suspect that energy is making a bottom. 


Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.