Wednesday, November 14, 2012

Jim Rogers: Invest in Countries with Well-Managed Commodities

Jim Rogers makes a living advising people on their investments.

He often makes an appearance on news programs to discuss a whole scope of topics...

On Sunday the world famous investor spoke with ET Now of India to answer some questions on the global economy, with answers ranging from market fundamentals to projections of future occupational role reversals.

Here are few takeaways from his interview (you can watch the interview in its entirety below):

  • Rogers feels the markets are always reacting to the fundamentals more so than anything else, such as the news: 

In the end, in the long term — and even in the medium term — markets rely on fundamentals, not on the short-term news.

  • Rogers discussed the poor job of debt management, specifically of Western nations like the United States and France, both of which have elections coming and the printing of money grows:

You're going to see a lot of money being spent and a lot of good news for the people who get that money [politicians]... but for the rest of us, the situation continues to deteriorate.

  • The Commodities King discusses how much he loves this market:

The numbers will be better in the economies which are well-managed and which have commodities, because commodities are in a bull market...

In my view, commodities are in a secular bull market, a bull market which has several more years to go.

I own commodities and I'm not thinking about selling my commodities. And if they go down, I'll buy more. But until a lot of supply comes upstream in all commodities, they have to be a good place to invest.

  • He mentions what we are going to be paying a lot more for in the future:

The price of oil over the next decade is going to go much, much higher. But the most exciting area in the world for the next 20 years or so for the economies is going to be agriculture.

The best thing you could do is become a farmer — that's where the money is going to be made.

The farmers are going to be driving the Lamborghinis in the next 20 years; the stock brokers are going to be taxi [drivers]. But the smart ones will learn how to drive tractors so they can work for the smart farmers.

Anything to do with agriculture, seeds, tractors, water — anything — is going to be extremely profitable over the next 20 years.


No comments:

Post a Comment