Monday, November 12, 2007

Comments from Jim Rogers on Where to Put Your Money

I am not telling you where to put your money and I cannot speak to whether or not the comments from Jim Rogers have value or not. However, he is a billionaire that he made it in partnership with George Soros. So that may just give him some insight that the rest of us don’t have.

Every time I talk to a financial advisor (planner, stock broker, etc.), I want to know what their net worth is. If it is less then mine there is not need to talk to them. From Yahoo:

The U.S. dollar is sinking fast and investors wanting to stay afloat should clamber into a raft of commodities and benefit from the rising tide of China's economic boom, investment guru Jim Rogers said on Monday.

"I'm hoping to get all my assets out of U.S. dollars in the next few weeks or months," he told reporters in Hong Kong via a video link from Singapore. "But that will include going into commodities because that is a way out of U.S. dollars."

Rogers, who co-founded the Quantum Fund with billionaire investor George Soros in the 1970s, said the U.S. economy was already in recession, or soon would be, and the U.S. dollar would continue to have problems for years to come.

But that would not be enough to dent demand from Asia.

"Asia's now becoming its own entity. Asia is growing on its own. If you look around Asia you'll see that they're much more independent of the United States and will continue to get more independent."

Driving this bull market would be 3 billion people -- in China, India, Pakistan and Vietnam -- whose economies were at a subsistence level during the last commodities boom.

"Now, look around you. Everybody in Asia wants to live the way we live in America," said Rogers.
He said he'd recently been buying agricultural commodities, which he favored over metals such as tin and lead , which were close to all-time highs.

"I think there are great opportunities in agriculture ... like sugar, which is something like 80 percent below it's all-time high, or cotton." he said.

Another long-term winner will be crude oil because, he said, demand continues to grow but new supplies are scarce.

"Over the course of the bull market, oil has to go to $150, it has to go to $200, because nobody's been discovering oil."

But Rogers, who described himself as the world's worst short-term trader, said all big rallies suffered occasional setbacks on the way up and he wasn't making any short-term forecasts about the oil price.

And bear markets catch support on the way down, which he said might give the dollar a few footholds as it falls.

"Everyone's extremely pessimistic about the dollar, so we're bound to have a rally soon," said Rogers.

But longer-term, the picture was clear and the best currencies to buy would be the Swiss franc, Japanese yen and Chinese yuan. He said the Chinese government should make the yuan fully convertible as soon as possible.

"I would certainly suspect by 2010, if not by the Olympics next year," he said. "It's causing bubbles within the Chinese economy. It's causing inflation within China."

But he had little love for the Hong Kong dollar, which he said should disappear as soon as the yuan becomes convertible.

"If I were the Hong Kong government, I would abolish the Hong Kong dollar. There's no reason for the Hong Kong dollar. It's a historical anomaly."

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