Jim Rogers is still bullish on commodities
Hat tip gaius marius.
Rogers is not just bullish on agricultural commodities. He is bullish on oil too. Rogers says:
Over the next decade or so, oil is going to go much, much, much higher because known reserves are declining at a very rapid rate.
As for agricultural commodities, he’s talking about severe shortages of food. Stock up.
About Edward Harrison
- Rogers: Bail on the dollar and equities 12 May 2009
- Jim Rogers: Called Freddie and Fannie a ‘disaster’ two months ago 8 Sep 2008
- Chart of the day: Commodities 29 Oct 2008
- Japanese stocks, Asian real estate and commodities 24 Jun 2008
- Conoco Phillips’ $34 billion writedown makes me bullish 16 Jan 2009
This is just silly. Doesn’t Rogers realize that China is a big bubble waiting to burst? What does he think will happen to commodities when it does?
I have the upmost respect for Mr. Rogers, but I don’t think he fully appreciates how most global agriculture is still woefully inefficient, but improving. As efficiency continues to improve, agricultural supply will increase sufficiently to inhibit sustainable price run-ups caused by increased demand. In the short run, marginal demand from hedge-funds may push forward prices higher from time to time, but farmers will simply increase supply, pushing prices lower again. Unless you’re a short-term “trader” – something Mr. Rogers always claims he is not – then you’re better off playing oil or other commodities with steep supply curves to counter potential inflationary pressures caused by “helicopter Ben”.