Way back in 1999 (when life was fun as we were all "virtual" millionaires), legendary trader Jim Rogers (partner of George Soros at the Quantum Fund) predicted a major commodities bull run, based on the simple law of "supply and demand." Many ignored him, or derided him - after all, stocks were red hot and even your grandmother could make a killing daytrading. Ah, yes, but then Jim Rogers has been proven right! Just look the charts of commodities such as Oil and Gold, commodities companies such as Allegheny Technologies and Freeport McMoran, and commodities dry bulk shipper such as Dryships. The good news is that Rogers thinks the commodities run still has legs (until 2015 in his book), and that the next big run will be in agriculture. Care about PALM OIL, anyone? (next blog entry will be on Palm Oil and why I think it's a decent play for investors).
Now Rogers has predicted that the best currency to be in will be the Chinese Yuan which he expects to quadruple (its now at 7.5 to the US Dollar). Rogers is also buying the Yen and Swissie as he believes that the "carry trades" will collapse one day. And Rogers is taking this action because he believes the US Government is "debasing" the US Dollar (citing that the British Pound lost over 80% of its value as it lost its status as the world's currency reserve).
Believe him or not? You choose (with the benefit of hindsight of 1999, of course). Here's the link to the article on Bloomberg (titled "Jim Rogers shifts out of Dollars to buy Yuan").
Chief Shook
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment