Legendary investor Jim Rogers has been bullish on commodities since 1999. He started out bullish on oil and metals and to a certain extent on soft commodities like orange juice, coffee and grains.
Here’s a great 10 minute video on his current economic views and what he’s investing in right now.
As always, he calls Ben Bernanke a clueless moron and has a great explanation for why lowering the interest rates is bad for the US economy. That’s always entertaining.
He thinks we might fall into the same trap as Japan and see 17 years of stagnant GDP. That’s downright depressing.
According to Bloomberg, Jim Rogers is in the process of getting all his assets out of the dollar.
“I’m in the process of, I hope in the next few months, getting all of my assets out of the dollar. I’m that pessimistic about what’s happening in the U.S.” Rogers said.
“The yuan is the best currency to buy right now, I don’t see how one can really lose on the renminbi in the next decade or so. It’s gotta go. It’s gotta triple. It’s gotta quadruple.”
Even though the markets were down today, my stock portfolio was up 3%. This was mainly because I’m heavily weighted in Oil and Gas Canroys and they were all buoyed today on news of a major takeover. Abu Dhabi’s state-owned utility company, National Energy agreed to buy out PrimeWest Energy(PWI) in a deal worth $5 Billion. PWI was up 30% on the news and all other canroys were up around 5% as well.
One of the ways, was to invest in foreign currencies. Apparently I’m not alone in thinking this might be a good idea. Amongst those who agree with me is Chris Gaffney, of Everbank. I’m a big fan of Everbank’s products, especially their Japanese REIT CD. According to Chris, who incidentally is Vice President of Everbank World Markets,
In the previous post on whether the US would experience a depression I said that this was unlikely, but that a recession accompanied by the devaluation of the Dollar resulting in inflation would be more probable.
What are the effects of inflation on conventional investments?
Inflation causes rising prices. It makes money less valuable. If the price of services and goods double, the value of your investments is effectively halved. It’s as if the prices had stayed the same, but you had just lost half of all your assets. Inflation reduces and can eventually destroy purchasing power.
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