Jim Rogers at the Asian Financial Forum Video Follows the Story Below
Jim Rogers, CEO of Rogers Holding gives a talk on making money in hard economic times. Mr. Rogers says that most people need a bull market to make money, but his concern is that the markets today, at best, will be volatile, with little or no growth.
If you want to make money in this period of time, as far as I’m concerned, the place to do that is in raw materials, or natural resources, or commodites, call them what you will.
He suggests that historically, periods of forced liquidation, like we have now, lead people to have to sell everything, without regard to market or economic fundamentals.
The way you make money, historically, is to find the thing where fundamentals are not impaired, and that’s what you buy.
Jim Rogers indcates that not only are the fundamentals of commodities not impaired, they are actually enhanced. According to Mr. Rogers, we should see an upside in commodities for a number of reasons:
- Farmers unable to get financing for basic farming necessities like fertilizer
- Nobody can open a new mine; mines are closing
- The world’s oil reserves are declining at 6.7% per year; all of the world’s reserves of oil are in decline
- The world’s inventory of food is the lowest we’ve seen in many years
- The supply of most commodities is coming under terrible pressure at a time when the world will continue to consume them
His predictions about the future of agriculture are gloomy if you are a consumer, but for investors who take the initiative, there is money to be made:
One of the great industries of the future is going to be agriculture. There are going to be magnificient fortunes made in agriculture and agricultural products.
The people who produce real things – farmers, miners lumberjacks,oil menÂ – are going to be the people who are making the money.
He also spent some time discussing government bonds and the bubble that is forming, not just in the US, but worldwide.
Anyone who is buying government bonds right now is making a terrible, terrible mistake. This is going to end badly.
They were in a bull market throughout the 80’s and 90’s. That bull market has come to an end. In my view that bull market ended in 2000.
On economic stimulus:
The idea that you can solve a period of excess borrowing and excess consumption with more borrowing and more consumption, and destroying more balance sheets, to me, is ludicrous on its face.
Jim Rogers at the Asian Financial ForumÂ Part 1 of 2:
Jim Rogers at the Asian Financial ForumÂ Part 2/2: