Showing posts with label Commodities. Show all posts
Showing posts with label Commodities. Show all posts
Tuesday, August 5, 2014
Commodities do well in times of War
Wars always affect all markets. When there is turmoil or fear, people are less likely to take risk. War is not good for anything except commodities. In such a scenario, people prefer to put their money into commodities like lead, copper or wheat because they know those are necessary for war. Likewise for gold. Thus, war is not good for anything except commodities. It is less bad for the people who win the war but in the meantime when there is uncertainty, people are afraid of investing and taking risk.
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, March 4, 2013
Rogers long commodities and currencies
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.
Tuesday, March 6, 2012
Jim Rogers: Play This Rally With Commodities - CNBC.com
The Dow and S&P 500 may have hit their highest levels since 2008 on Tuesday, but Jim Rogers , CEO and Chairman of Rogers Holdings, is still staying away from stocks. Instead, he told “The Kudlow Report” he’s playing the rally with commodities.
“You see what’s happening to gold … Oil went down today, yes, but oil’s been going through the roof,” he said. “There are other ways to play. They’re printing a lot of money, Larry. When they print money, you have to protect yourself with real assets in the end.”
Rogers says things are “fine” right now because it’s an election year, not only in the U.S. but around the world, and that means governments are spending and printing money. It’s the future he’s concerned about.
“Worry about 2013. Be panicked bout 2014,” Rogers said. “But this year a lot of good news is coming out.”
If President Obama wins the election, everybody’s going to say “Oh My God,” he said. If Obama loses, everyone is going to have to cut back because the president has “gone to excess” to try to win the election.
Right now, Rogers thinks it looks like Obama is going to win.
“I don’t want him to win. It’s not good for America. But it’s hard to defeat a sitting president,” he said. “And he’s spending a lot of money. Things are going to feel good this year just because he’s throwing money into the market and into the economy.”
“You see what’s happening to gold … Oil went down today, yes, but oil’s been going through the roof,” he said. “There are other ways to play. They’re printing a lot of money, Larry. When they print money, you have to protect yourself with real assets in the end.”
Rogers says things are “fine” right now because it’s an election year, not only in the U.S. but around the world, and that means governments are spending and printing money. It’s the future he’s concerned about.
“Worry about 2013. Be panicked bout 2014,” Rogers said. “But this year a lot of good news is coming out.”
If President Obama wins the election, everybody’s going to say “Oh My God,” he said. If Obama loses, everyone is going to have to cut back because the president has “gone to excess” to try to win the election.
Right now, Rogers thinks it looks like Obama is going to win.
“I don’t want him to win. It’s not good for America. But it’s hard to defeat a sitting president,” he said. “And he’s spending a lot of money. Things are going to feel good this year just because he’s throwing money into the market and into the economy.”
Saturday, December 10, 2011
Jim Rogers Interview: Abolish the Fed, Buy Commodities, Short Stocks
NEW YORK (TheStreet ) -- Jim Rogers is bullish on commodities, is shorting emerging market and American technology stocks and says the U.S. economy is in serious trouble.
Rogers, chairman of Rogers Holdings and legendary investor, gained international fame by calling the commodity rally in 1999 and loves contrarian investments. Rogers sat down first with TheStreet to give his take on the European sovereign debt crisis, the health of the U.S. economy, the possibility of a slowdown in China and his investment strategy for 2012.
2012 Outlook
What's the biggest risk to the U.S. economy in 2012?
Rogers: Probably the Federal Reserve in America because they don't know what they are doing. There are other risks: China is slowing down, Europe's got serious problems. They don't know what they are doing or how to solve it, but I would say the single worst risk is the United States central bank.
And that they would end up printing their way out of whatever slow down we are having?.
Rogers: They already are. They have already started printing money again. And they are printing a lot and they don't seem to understand economics or finance or currencies or much of anything else except printing money.
Why is that the biggest risk compared to say China and Europe as you mentioned?
Rogers: Well, first of all, China is a third the size of the U.S. economy. Europe and America are ten times the size of China. So even if China collapses, it's not the end of the world and even if China booms, it's not going to save the world.
It's important, it's very important but it's not the most important thing. China is trying to slow down and some parts of their economy are going to fail, collapse, they are going to have some bankruptcies.
Europe is certainly extremely important, what's going on there but Europe as a whole is in much better shape than we are. Europe as a whole is not a big debtor. The United States, as a whole, is the largest debtor nation in the history of the world and we've got states that are in trouble -- Illinois, New York, California. Europe has states that are in trouble -- Greece. You know the names as well as I do. No, America is the one we have to worry about the most.
Most investors are now more worried about Europe, however, because they think that we are going to see Greece fail, Italy fail and Spain fail. So what are they missing? Why isn't that the biggest headline they should be looking at?
Rogers: These are problems. Don't get me wrong. These are serious, serious, serious problems. You asked me what the biggest situation is and I am suggesting to you it's the United States. Europe is very important, China is very important, Japan is very important, but America is the biggest economy still and we are the ones with the worst central bank. Our central bank understands less than other central banks and therein lays the risk.
Investment Opportunities
For a retail investor who is not a big hedge fund, who doesn't have all of the algorithms that they can trade off of, who might be say 50% in cash, 80% in cash, what should they do headed in 2012?
Rogers: First, you better make sure that cash is in the right cash. A few years ago many people put their money in Icelandic krona, thought they were very safe. They had currency and they were earning high rates of interest and of course the krona collapsed and some of those people lost all of their money. So make sure you are in the right cash, first of all.
Second, what I am doing with my money is I own commodities and currencies and I am short stocks. I am short American technology stocks, I am short European stocks, I am short emerging market stocks. That's what I am doing but who knows if I am right.
source
Rogers, chairman of Rogers Holdings and legendary investor, gained international fame by calling the commodity rally in 1999 and loves contrarian investments. Rogers sat down first with TheStreet to give his take on the European sovereign debt crisis, the health of the U.S. economy, the possibility of a slowdown in China and his investment strategy for 2012.
2012 Outlook
What's the biggest risk to the U.S. economy in 2012?
Rogers: Probably the Federal Reserve in America because they don't know what they are doing. There are other risks: China is slowing down, Europe's got serious problems. They don't know what they are doing or how to solve it, but I would say the single worst risk is the United States central bank.
And that they would end up printing their way out of whatever slow down we are having?.
Rogers: They already are. They have already started printing money again. And they are printing a lot and they don't seem to understand economics or finance or currencies or much of anything else except printing money.
Why is that the biggest risk compared to say China and Europe as you mentioned?
Rogers: Well, first of all, China is a third the size of the U.S. economy. Europe and America are ten times the size of China. So even if China collapses, it's not the end of the world and even if China booms, it's not going to save the world.
It's important, it's very important but it's not the most important thing. China is trying to slow down and some parts of their economy are going to fail, collapse, they are going to have some bankruptcies.
Europe is certainly extremely important, what's going on there but Europe as a whole is in much better shape than we are. Europe as a whole is not a big debtor. The United States, as a whole, is the largest debtor nation in the history of the world and we've got states that are in trouble -- Illinois, New York, California. Europe has states that are in trouble -- Greece. You know the names as well as I do. No, America is the one we have to worry about the most.
Most investors are now more worried about Europe, however, because they think that we are going to see Greece fail, Italy fail and Spain fail. So what are they missing? Why isn't that the biggest headline they should be looking at?
Rogers: These are problems. Don't get me wrong. These are serious, serious, serious problems. You asked me what the biggest situation is and I am suggesting to you it's the United States. Europe is very important, China is very important, Japan is very important, but America is the biggest economy still and we are the ones with the worst central bank. Our central bank understands less than other central banks and therein lays the risk.
Investment Opportunities
For a retail investor who is not a big hedge fund, who doesn't have all of the algorithms that they can trade off of, who might be say 50% in cash, 80% in cash, what should they do headed in 2012?
Rogers: First, you better make sure that cash is in the right cash. A few years ago many people put their money in Icelandic krona, thought they were very safe. They had currency and they were earning high rates of interest and of course the krona collapsed and some of those people lost all of their money. So make sure you are in the right cash, first of all.
Second, what I am doing with my money is I own commodities and currencies and I am short stocks. I am short American technology stocks, I am short European stocks, I am short emerging market stocks. That's what I am doing but who knows if I am right.
source
Saturday, July 30, 2011
Whatever Happens, Commodities Win: Jim Rogers
Jim Rogers, the CEO and Chairman of Rogers Holdings, told CNBC that no matter what happens to the global economy, he will make money with his commodity positions.
"If the world economy gets better, I earn money on commodities. If the global economy gets worse then they will print more money and I will make money in commodities," Rogers said in an interview with CNBC on Monday. With the commodities market highly correlated with the greenback in recent months, Rogers said he is also long the dollar. "I am long the dollar (Exchange: EUR=X) as everyone was bearish. So I am long the dollar. In five years I may not be not be long the dollar but I am now. The dollar and commodities do not have to move in correlation despite what you see on CNBC," Rogers said.
Despite all the volatility on global markets Rogers said he was keeping it simple. "I am long commodities and own a number of currencies. I am short long-dated US Treasurys, I am short US technology, one major US bank and emerging markets," he said.
The short positions would, in Rogers' view, protect him if things get worse for the global economy and he believes the Federal Reserve and other central banks will protect his commodity positions by printing more money . With euro zone finance ministers meeting in Brussels and the Financial Times reporting EU officials are now discussing a plan to bail out Greece again will involve some kind of default, Rogers said the Chinese will continue to buy euro zone debt.
"Someone is going to take a haircut, Greece is going to default, it has to default. But for China giving money to the EU is very cheap foreign aid. They are getting influence for their money," said Rogers.
"If the world economy gets better, I earn money on commodities. If the global economy gets worse then they will print more money and I will make money in commodities," Rogers said in an interview with CNBC on Monday. With the commodities market highly correlated with the greenback in recent months, Rogers said he is also long the dollar. "I am long the dollar (Exchange: EUR=X) as everyone was bearish. So I am long the dollar. In five years I may not be not be long the dollar but I am now. The dollar and commodities do not have to move in correlation despite what you see on CNBC," Rogers said.
Despite all the volatility on global markets Rogers said he was keeping it simple. "I am long commodities and own a number of currencies. I am short long-dated US Treasurys, I am short US technology, one major US bank and emerging markets," he said.
The short positions would, in Rogers' view, protect him if things get worse for the global economy and he believes the Federal Reserve and other central banks will protect his commodity positions by printing more money . With euro zone finance ministers meeting in Brussels and the Financial Times reporting EU officials are now discussing a plan to bail out Greece again will involve some kind of default, Rogers said the Chinese will continue to buy euro zone debt.
"Someone is going to take a haircut, Greece is going to default, it has to default. But for China giving money to the EU is very cheap foreign aid. They are getting influence for their money," said Rogers.
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