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.