Legendary investor Jim Rogers spoke to Bloomberg’s Catherine Yang this morning about commodities, currencies, and his investments:

Commodities

In response to a question by Bloomberg’s Catherine Yang about whether or not the bull market in commodities will be intact 10 to 15 years from now, Rogers replied:

Bull market for commodities? Absolutely… I’d much rather own commodities than just about anything.

Oil:

Oil, the bull market started in 1999. Three times in the last nine years oil has gone down 40 or 50 percent. All the skeptics said- see, we told you it wasn’t a bull market. And every time it came back up and kept going higher. Oil could go down 50 percent again, that’s not a projection, I’m just explaining, that’s how markets work. There’s nothing to stop oil from going to $75, but it’s not the end of the bull market, because nobody’s discovered any oil.

Currencies

Dollar Recovery:

The dollar recovery is certainly taking place and it has a ways to go. Maybe a few weeks, few months, I don’t know, maybe another year or so that the dollar could recover because it was beaten down so much…

But the dollar recovery, I still plan to get out of my dollars sometime during this recovery, but I have no idea how long the recovery will last.

Carry Trade, Japanese Yen, Swiss Franc:

I’m buying currencies which have been the victims of the carry trade, on the assumption that the carry trade will end someday, and when it does, the yen and the Swiss franc are the main victims, will go up for a while.

Australian, New Zealand Dollars:

The Australian dollar and the New Zealand dollar were two of the main beneficiaries of the carry-trade… this reversal of the carry-trade will not last forever, it will last for a while. The Australian and New Zealand currencies are still two of the better currencies in the world longer-term.

Chinese Renminbi, Signapore Dollar:

I‘d rather own the renminbi than just about anything… the renminbi is one of the better investments one can make, and the Singapore dollar as well. The Singapore dollar is something else I own. I’m not buying it at the moment, because, as I’ve said, I’m focusing on these other currencies that have been victims of the carry-trade.

Other Investments

Airlines. I’ve been buying airlines for the summer, for a while now. Airlines, renminbi, Swiss franc, Japanese yen.

You can view the 4 minute 54 second segment here.

Source:

Jim Rogers Interview
Bloomberg, September 10, 2008

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