Thursday, August 20, 2015

Oil could be a buy after it goes down further

I would not buy oil. It’s pretty clear to me that oil is going to go down to test the previous lows, and it might even go under a little bit to scare people. I wouldn’t buy gold either. I’d rather buy agriculture if I were buying commodities at this stage.

The way most markets work is once you have a big collapse in something and it hits a low, there’s a second test of the lows. Right now you’re getting that second test in oil. I suspect that it will pass the test, or at the worst, maybe make a minor new low.

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.