Jim Rogers Shares Latest Investment Strategy
Legendary investor Jim Rogers talked with Bloomberg’s Tom Keene and Ken Prewitt on Tuesday about his investment strategy these days. Here are some notable excerpts from the exchange:
I’m using this rally, which I consider artificial, to sell the rest of my U.S. dollars…
I do own gold, and I do plan to buy more… I expect gold to be much higher, I don’t know, a year from now, five years from now, ten years from now, who knows… The old high, to adjust for inflation, was over $2,000 an ounce, so I’m sure it’ll get there over the course of the bull market. But again, the bull market has got several more years to go, so I don’t know when that’s going to happen…
In my view, farming is going to be one of the great businesses of the next decade or two, and farming products, wheat, corn, cotton— one of the most exciting places in the world to invest— in my view right now…
In my view, commodities, and especially agriculture, is the place to be…
Well, I certainly wouldn’t buy fixed income at this time, Tom, under any circumstances. I wouldn’t do it with my— I wouldn’t do it with your money. I mean, we’re going to have gigantic amounts of government debt coming onto the market all over the world in the next year and inflation is going to be coming back in a big, big way. The governments around the world are printing huge amounts of money. Throughout history, that has led to higher inflation. Unless they were very short-term bonds, I would not buy debt instruments at all. Well, I tell you what I did. I covered my shorts in October, mid-October, in what I hope was a selling climax. I’ve been buying commodities, I’ve been buying Chinese shares, I’ve been buying Taiwan shares, and I’ve been buying the Japanese yen…
I bought some oil a couple of weeks ago… The facts are, the supplies of oil are declining at a very rapid rate. I can’t see how we can avoid oil being over $100, $150, $200 a barrel sometime in the next ten years… I do know that supplies of oil are going down, I do know that there are huge shortages of oil developing in the world, and I do know that the price of oil has to go much, much higher…
Nearly all equities in the United States still have deteriorating fundamentals… I own international airlines, and I may buy some more in the next week or two. But other than that, I’m staying away from equities.
You can listen to the 18 minute 7 second segment here.
Source:
Jim Rogers Interview
Bloomberg, December 16, 2008
