I am bullish on agri commodities: Jim Rogers 2009-02-03 15:15:00
SINGAPORE: The world may be going through an unprecedented economic downturn leading to falling stock markets, volatile commodities markets and collapse of banking giants. But some wise investors continue to be bullish in these times of extreme bearish markets. One such ace global investment guru is Jim Rogers.
Rogers, who shifted his residence from the United States to Singapore, “to live in Asia because things are happening in Asian countries, particularly China,” says he continues to be bullish on a select few commodities.
”I continue to be bullish on most agricultural commodities. I also look forward to big investment opportunities in commodities like crude oil, cotton and zinc,” Rogers had told Commodity Online in a recent interview.
Rogers, chairman of Rogers Holdings, and a a vocal critic of America and Britain says commodities will be the place to put your money so that when the world comes out of the economic meltdown, you will benefit.
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According to him, since farmers cannot get loans, they can not get their fertilizer. “No company is opening a new mine, leaving supply problems open to shortages,” he said pointing out that commodities prices will naturally rebound in the next few years.
In 1998, Rogers launched the Rogers International Commodity Index, a composite, US dollar-based, total return index, designed to meet the need for consistent investing in a broad based international vehicle. The Index represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy to metal products.
Recently, Rogers said that he hated British pound and is putting all future hope and investments only on China. “The charm of United Kingdom is all over and it would be prudent if you sell all their currency (pound sterling) fast,” he said.
With his focus on agricultural commodities, Rogers has been saying that he has great hopes on China because China is an agricultural gaint. Rogers, author of such famous books like Hot Commodities and A Bull in China, recently launched an agricultural commodities index focused on food consumption in China.
Saying that China is a fascinating place to invest in, Rogers said China is on the rise, like America 100 years ago, and the problems the Asian giant is encountering right now in certain, mainly export-driven, sectors of its economy will not alter the country’s long-term trajectory.
According to Rogers, three billion people living in Asia, most of them in India and China, will account for a major portion of the total demand for commodities in the coming years.