Agricultural products themselves are not doing terribly well, but that’s because not much is doing terribly well. I own a few agricultural stocks, but mainly I own the commodities themselves. You know, sugar’s down 80 percent almost from its all time high. So some of these things are very very cheap. It doesn’t mean they can’t get cheaper as they have, cause everybody’s panicked about everything these days.
I do expect the precious metals to get a lift but other commodities too because people will be desperate for real assets. Agricultural commodities will be in great demand at that point. But oil too. I mean, oil is bound to be making a bottom some time in the next few months. It’s a complicated bottom obviously…but if oil goes to – you pick the number – then of course, oil’s going to make a bottom too, and when people start to look for places to put their money, they’re going to be looking for real assets and getting out of their dollars. They’re going to be looking for real assets because they know the banks are just totally debasing the currencies all over the world.
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.
Monday, February 29, 2016
Thursday, February 25, 2016
Dont buy something just because I said to buy it
Midas Letter: So what do you think the chances are that this sort of borderline market panic that we’ve been observing in the last few sessions here ignites a total global dash for the exits in such a way that it brings markets to their knees and catalyzes a global debt and currency reset?
Jim Rogers: Well, as we discussed last time, James, what’s going to happen is, somewhere along here, the central banks are going to panic. I repeat, they’re just bureaucrats and academics; they don’t know anything, which is why they work for the government. So they’re going to panic, they’re going to do something, I have no idea what, to try to come to our rescue, which will cause a rally. It could be a nice rally. It’s not going to work in the long term, however, because the market always has more money than the central banks, no matter how much money the central banks have. So we’re getting near the end. There’s no question.
Midas Letter: So in the event of such a massive deflationary phase, where all capital flees the markets and is hoarded, how do you recommend an individual investor protect himself, and where does somebody put their money if the value at risk is deteriorating or even evaporating?
Jim Rogers: Well, again, I want to repeat it: it depends on what you yourself know a whole lot about. Buy yourself a farm if you know anything about agriculture, because agriculture is going to come through this with flying colours in the next decade or two. Or invest in farm products; buy yourself some sugar and put it away, or buy sugar futures. So that’s one area. Certainly at one point along here, gold and silver, I will be buying more gold and silver; I expect another opportunity. It may not come, I may have to just stay with what I’ve got, but if another opportunity comes, I plan to buy more. If the renmibi becomes convertible, and the Chinese say it will, chances are I’ll put money into the renmibi somewhere along the line. I own a lot of US dollars at the moment, not because I have confidence in the US dollar, but because there’s so much turmoil, people look for a safe haven in times of turmoil, and they think the US dollar is it. So there’s some currencies one can buy. You might think about the ruble if you’re good at trading; it just depends on what you’re good at. Don’t listen to someone you hear on the internet, stay with what you’re good at.
Midas Letter: Right. Okay. We’re going to be on the internet though.
Jim Rogers: I’m urging people, don’t listen to me, just stay with what they know. They may listen to my ideas, they may say oh, I heard some guy suggest buying a farm; let me think about that. But don’t do it because I said buy a farm, think about it.
via Midas letter interview
Wednesday, February 24, 2016
Jim Rogers speaks with Midas Letter on US Treasury and Gold
Midas Letter: Treasury yields have dropped to record lows, but what’s happening in the G8 almost suggested general abdication of faith in the world’s major currencies. Do you see that manifesting in a flight away from government debt anytime soon?
Jim Rogers: Well, yes and no. Somebody’s buying all this debt at no return; many people are forced to buy it. Some of the people I talked about before, pension plans, insurance companies, etc, don’t have any choice but to buy it, and then of course, the central banks are buying it themselves in staggering amounts, especially the American central bank. So yes, there’s going to be a time where people simply will not put up with this garbage anymore, they’ll say I don’t care, I don’t want your garbage. First of all, the returns are virtually nothing, especially if they go to negative returns; people are going to find other places to put their money.
Therein lies a huge problem: what will happen is that interest rates will go much, much higher, and that will attract some funds, but people are going to continue to lose faith in governments and government paper money.
Midas Letter: Right. So that, to some extent, would you say, explains gold’s performance since the end of 2015, which has been nothing short of explosive? In the past, gold has tumbled with major market indices, but this time, it’s acting completely opposite to major stocks. Does that suggest it may be regaining its appeal as a safe haven status for larger institutions?
Jim Rogers: Well, James, it certainly has this year; I mean, get out your charts. You’ll see in the last six weeks, gold has gone straight up. I cannot think of much else that has gone straight up, maybe silver, but not very much has gone straight up in the last six weeks. Is it the beginning of the resumption of the long term bull market in gold? I have no idea; I have not bought any on this move. I haven’t sold any, I’m just watching. I’m skeptical that it’s the beginning of the big move, but who knows?
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.
Jim Rogers: Well, yes and no. Somebody’s buying all this debt at no return; many people are forced to buy it. Some of the people I talked about before, pension plans, insurance companies, etc, don’t have any choice but to buy it, and then of course, the central banks are buying it themselves in staggering amounts, especially the American central bank. So yes, there’s going to be a time where people simply will not put up with this garbage anymore, they’ll say I don’t care, I don’t want your garbage. First of all, the returns are virtually nothing, especially if they go to negative returns; people are going to find other places to put their money.
Therein lies a huge problem: what will happen is that interest rates will go much, much higher, and that will attract some funds, but people are going to continue to lose faith in governments and government paper money.
Midas Letter: Right. So that, to some extent, would you say, explains gold’s performance since the end of 2015, which has been nothing short of explosive? In the past, gold has tumbled with major market indices, but this time, it’s acting completely opposite to major stocks. Does that suggest it may be regaining its appeal as a safe haven status for larger institutions?
Jim Rogers: Well, James, it certainly has this year; I mean, get out your charts. You’ll see in the last six weeks, gold has gone straight up. I cannot think of much else that has gone straight up, maybe silver, but not very much has gone straight up in the last six weeks. Is it the beginning of the resumption of the long term bull market in gold? I have no idea; I have not bought any on this move. I haven’t sold any, I’m just watching. I’m skeptical that it’s the beginning of the big move, but who knows?
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.
Tuesday, February 23, 2016
Japanese who held cash in Yen terms have lost a lot of money via currency devaluations
Well, if you’re going to buy bonds, you should certainly buy high quality, which is mainly government, but you should only buy short term bonds. I wouldn’t buy 30 year bonds with his money or your money for that matter, because unless you’re a good trader, we’re going to see much, much, much higher interest rates eventually. We’ll probably see lower interest rates first, which will benefit the high quality bonds. But from his point of view, or from many people’s point, there’s not much else you can buy.
You can put your money in currencies or cash, but you got to have the right cash or you’ll lose a lot; a lot of smart Japanese put all of their money in yen three or four years ago, and now it’s down 50 percent in that period of time. So you have to be careful what to buy, and certainly government bonds have been, and they continue to be, one of the things that you could buy. But buy the right government and the right currency as well, if you buy government bonds.
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.
You can put your money in currencies or cash, but you got to have the right cash or you’ll lose a lot; a lot of smart Japanese put all of their money in yen three or four years ago, and now it’s down 50 percent in that period of time. So you have to be careful what to buy, and certainly government bonds have been, and they continue to be, one of the things that you could buy. But buy the right government and the right currency as well, if you buy government bonds.
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.
Monday, February 22, 2016
India can attract foreign investors by reducing debt and opening up the Indian Rupee
I love India. But what your government needs to do is stop running up debt. I promise you, when the next Budget comes out it’s not going to show a reduction in debt. The deficits are going to still be there and the debts are going to go high. The other thing that they need to do is to open up the currency.
I hope that the government, central bank and everybody in India let the currency do what the market wants it to do. This is 2016. Why is India still worrying about things like that? Fifty years ago, the politicians thought they had to. But this is not difficult for politician. Narendra Modi claims that he understands economics and understands how the world works. Stop interfering with the currency. Let the market do its work even if it goes down a lot for a while. Even if it goes down for a while people like me will come rushing in to buy more.
This is 2016. This is not 1916. India is a strong and prosperous country. Let your currency be open and free. And if your markets and currency is open and free, chances are more people like me will be investing there.
Friday, February 19, 2016
Jim Rogers prefers investing in gold buying gold and silver coins
Well, everybody should invest in what they know about and what they feel. If you’ve got a gold mining company about which you know a whole lot, that you know is a bargain, you should buy it. My preferred way is gold coins, just because they’re easily recognizable. I mean, bullion, in an emergency, James, you can’t really go down to the grocery store and say hey, I want to buy a couple loaves of bread, I can’t make change. Now, gold coins could be a problem too, but it’s less of a problem than a kilo of gold.
And if you’re good at trading and investing, sure, that gold shares, gold ETFs, there are plenty of ways to do it; my single preferred way, and I have plenty of ways to invest, but my main way is gold coins and silver coins.
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.
And if you’re good at trading and investing, sure, that gold shares, gold ETFs, there are plenty of ways to do it; my single preferred way, and I have plenty of ways to invest, but my main way is gold coins and silver coins.
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.
Thursday, February 18, 2016
Savers who followed their parents advice getting wiped out
We all could be moving our investment markets everywhere whether it is stocks or bonds whatever happens because of this craziness that Washington has been doing. You know the way the world is supposed to work — your parents taught you to save and invest for your future. For all the people who did that, who saved and invested for the future, are getting wiped out because they are getting zero interest or getting no return on their money, which is damaging pension plans, trust, insurance companies.
It’s destroying all the people who save. So we are going to have a big mess as debt has gone up and savings have gone down.
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.
It’s destroying all the people who save. So we are going to have a big mess as debt has gone up and savings have gone down.
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.
Wednesday, February 17, 2016
Negative interest rates is bad news for savers
These guys at the Federal Reserve are academics and bureaucrats; they don’t have a clue, that’s why they work for the government. What good are negative interest rates going to do anybody? They’re having experiments, they’re reading their textbooks – I don’t even know if any textbooks write about such foolishness. They’re coming up with various and sundry ideas, they’re trying them out, and you and I are paying the price. What good would negative interest rates do – negative interest rates are going to destroy…
[We were taught] to save your money and invest for the future. All of those people who did that are now getting wiped out, whether it’s their pension plan, insurance company or retiree, trust company, whatever it is, they’re all getting wiped out at the expense of people who went out and borrowed staggering amounts of money, who did all the things that we were taught not to do. Now they’re just making it worse. You ask why we have problems, that’s one of the major problems: a massive amount of the world population, and by the way the people that you need, the ones who save and invest, are being destroyed.
Tuesday, February 16, 2016
Why I shorted the NASDAQ
I was short the US, the US market, but I was mainly short the QQQ. As you know, the few big stocks, so six or eight or ten big stocks: Amazon, Netflix, Microsoft, those stocks, never went down. You can look at something called the QID, which is a reverse ETF for those stocks; that, you’ll see where I have been short. I have been shorting those stocks because they never went down, they were vastly overpriced.
In the year 2015 in America, the New York Stock Exchange had twice as many stocks down as up, so the market was fooling everybody, but it was fooling everybody because of these eight or ten stocks that went to staggering levels and never went down. So that’s what I shorted, and still am. And by the way, I have not added to that short, I have not covered that short, I am still short, and watching.
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.
In the year 2015 in America, the New York Stock Exchange had twice as many stocks down as up, so the market was fooling everybody, but it was fooling everybody because of these eight or ten stocks that went to staggering levels and never went down. So that’s what I shorted, and still am. And by the way, I have not added to that short, I have not covered that short, I am still short, and watching.
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.
Monday, February 15, 2016
Commodities down due to US Dollar strength
When the dollar goes up, commodities are soft all over the world, no matter what the commodity is. I suspect you are going to see more of that. I am not buying gold yet. I am not buying anything — stocks, commodities or bonds for that matter. I am sitting and watching. I am short on the US and long on China. I would expect more problems, more turmoil and that would present opportunities eventually.
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.
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.
Thursday, February 11, 2016
Oil prices may be in a bottoming process but could see panic low
In my view, oil is making a complicated bottom. If we have some kind of panic, who knows how low oil or anything else can go? You know as well as I do that you have hysteria or a panic, things go to crazy prices. But oil, other than the panic, is making a complicated bottom. Capacity is coming out of oil especially in America. We are seeing the bottom for oil.
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.
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.
Wednesday, February 10, 2016
2016 - 2017 will not be good partly due to central bank mistakes
We will all have to pay the price of mistakes.
The world is going to have problems. In America that used to be the main market, it has not got a serious stock market set back in the past 6-7 years. That is very unusual. Normally, market corrects 15-20 per cent every year or so. We haven’t had corrections like that because of the artificial money printing by the central bank. We are going to have a big problem next time we have a setback and it is coming in 2016-2017.
Wednesday, February 3, 2016
Rogers on US Stocks, China, Junk Bonds and US Dollar
What I have done is I’m short in the U.S. stock market – the nine or ten stocks that never go down – Amazon, Netflix…those things. I am short junk bonds in the U.S.,
I am long in China – mainly because I have to be long somewhere.
So I’m short junk bonds, I’m short the U.S. stock market, I own a lot of U.S. dollars for the reasons I mentioned. That’s mainly where my money is. But who knows if I’ve got it right. I own some other stocks too that I’ve owned for decades.
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.
I am long in China – mainly because I have to be long somewhere.
So I’m short junk bonds, I’m short the U.S. stock market, I own a lot of U.S. dollars for the reasons I mentioned. That’s mainly where my money is. But who knows if I’ve got it right. I own some other stocks too that I’ve owned for decades.
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.
Monday, February 1, 2016
Central Bank money printing will get worse
When the next turmoil comes, they’re all going to print money to save us, they’re going to get calls from all over the world saying civilization is coming to an end, and you must save us. There comes a time when nobody’s going to pay attention. That’s what I expect to happen.
They’re going to try something new next time around, and it’s not going to work. I mean they work for a while, but it’s not going to work. And then, they’re all going to do their best, but their best is going to lead to ruination because the rest of us are going to say ‘we don’t want your garbage any more, we don’t want to place this game any more.
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.
They’re going to try something new next time around, and it’s not going to work. I mean they work for a while, but it’s not going to work. And then, they’re all going to do their best, but their best is going to lead to ruination because the rest of us are going to say ‘we don’t want your garbage any more, we don’t want to place this game any more.
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.
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