Jim Rogers is still convinced commodities are a better investment than stocks and bonds at this point in time. Bloomberg’s Kyung Bok Cho wrote yesterday:

The rout in global markets may continue while bonds will be a “terrible” investment as economic problems may persist until 2010, investor Jim Rogers said.

“Stocks in the West are still expensive on any historic valuation method,” while “bonds are going to be a terrible place to be for the next 10, 20 years,” Rogers, chairman of Singapore-based Rogers Holdings, said at a conference in Seoul today. Equities in the West will be “in a trading range for years to come,” he said.

Despite an environment where more than $28 trillion has been lost in global equity markets and credit losses and write-downs have totaled $690 billion, the former partner of George Soros has made some purchases lately. The Bloomberg reporter wrote:

“I have started going back into the markets; that does not means it’s the bottom,” Rogers said. His purchases since mid-October include commodities and equities in China and Taiwan, as well as “a Korea stock,” he said, without giving details. “We may be hitting ‘a’ bottom,” Rogers said. “I don’t know if it’s ‘the’ bottom.”

Sungnyemun Gate
Seoul, South Korea

And commodities are still the place you want to be, according to the investor who called the beginning of the latest bull run in hard assets back in 1999. From the Bloomberg piece:

Rogers continues to favor commodities as an investment as fundamentals are “unimpaired” amid a global liquidation of assets, he said. “You will see that stocks have gone down more so far than commodities. That will continue as far as I’m concerned.”

An MSCI index of developed- and emerging-market stocks has lost 44 percent so far this year, compared with a 30 percent decline in the Reuters/Jefferies CRB Index of 19 commodities.

Source:

“Global Stock Market Rout May Continue, Rogers Says (Update1)”
Kyung Bok Cho
Bloomberg, November 11, 2008

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