Tuesday, March 1, 2011

Rogers: Short Emerging Makets and NASDAQ In a Commodity Bull Cycle

Famous investor Jim Rogers was at Bloomberg on Feb. 28 (clip below) talking about his latest investing strategy. 

'Farmers will drive Laborghini's'

Rogers has been bullish on commodities for a long time and still holds his prediction that gold will reach $2,000 in this decade, and silver will go to $50.  He sees commodity is the middle of a secular bull cycle that will last for a few years. 

Softs (agriculture) is in a "huge" bull market, and eventually, this shift will manifest itself in something like this - smart farmers will drive Laborghini's, while smart brokers will drive tractors for smart farmers.

Saudi Can't Increase Oil Production

He is also skeptical as to Saudi's ability to ramp up production to bridge the supply disruptions as claimed.  So, that means oil prices will continue to go up; however, this time around, he suggests investors look at big name resource producers in oil companies, miners, etc.  In the meantime, he said he also owns U.S. dollar.    

To play the commodity bull cycle, it is best to be in "everything," but to hedge yourself, he says he is short emerging markets and Nasdaq stocks since he is uncertain about the global economy. 

Static Chaos, March 01, 2011

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