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