By Shawn Langlois
Commodities are offering an historic bargain relative to equity valuations.
The next bear market is “going to be the worst in my lifetime.”
Source: Market Watch
https://www.marketwatch.com/story/the-n ... eid=yhoof2
Commodities are offering an historic bargain relative to equity valuations.
The next bear market is “going to be the worst in my lifetime.”
There’s simply too much money injected into the monetary system by central banks to allow a sizeable bear market to take place soon.
“It is beginning to [a bubble] in some stocks and in other countries as well, China, Japan, but in the U.S. I don’t know anywhere where there’s a full-fledged bubble yet in any stock market.
The bond market all over the world is a bubble, but I don’t know any stock market that’s a full-fledged bubble yet,” he said.
Rogers has been bearish on the U.S. stock market for years.
He likes the following:-
1. Silver
2. Copper
3. Agriculture - Sugar, Corn, Farmland
4. Fine art
“This has to be the worst bear market in my lifetime, which means it will go down a lot and it will last a long time”.
If you are looking for a safe haven, Rogers says “there is no such thing as safe” in the world of investments.
“Silver is probably less dangerous than other things. Gold is probably less dangerous,” he says. But that doesn’t mean they are crash-proof.
“I'm not buying them now, because in a big collapse, everything goes down. But I probably will buy more silver when it goes down some more.”
Silver is widely used in the production of solar panels and is a critical component in many vehicles’ electrical control units. Rising industrial demand, in addition to its usefulness as a hedge, makes silver in particular a compelling asset for investors.
Invesco DB Agriculture Fund (DBA).
Rogers also likes the idea of investing in farmland itself.
Some real estate investment trusts specialize in owning farmland, such as Gladstone Land (LAND) and Farmland Partners (FPI).
If and when all our money is on our computer, it’s going to be government money,” he said in a recent interview with Bloomberg Crypto. “That’s not the way bureaucrats think. That’s not the way politicians think. They want control. They want to regulate everything.”
Silver
Agriculture
Farmland
Commodity prices are commonly believed to be a leading indicator of inflation.
When asked what he would go long on for the next three years, Rogers’ response was simple: “First, silver, maybe agriculture.”
“Silver is down something like 70 or 80% from its all-time high and gold is 15% below its all-time high”.
What he would short for the next three years.
“The one thing I would sell would be the American stock market, the FAANGs, the technology stocks in America”.
Rogers revealed that he owns silver and said he would buy more of the metal “if it goes down more.”
Precious metals like gold and silver can’t be created out of thin air like fiat money, so they have been popular options for people looking to hedge against inflation.
“Silver is down 60% from its all-time high.”
Investors can gain exposure to agriculture through exchange-traded funds (ETFs) like the Invesco DB Agriculture Fund (NYSEARCA: DBA).
If you are bullish on specific agricultural commodities, you may want to check out names like the Teucrium Wheat Fund (NYSEARCA: WEAT) and the Teucrium Soybean Fund (NYSEARCA: SOYB).
Of course, you can also invest in farmland itself.
Jim Rogers warned about US government debt, de-dollarization and multiple asset bubbles.
Stocks, bonds and real estate, are widely overvalued.
Rogers touted commodities as offering good value and dismissed the idea of the BRICS bloc.
Sugar and silver are still down sharply from their all-time highs. He sees rich potential in assets like agricultural products and metals going forward.
Jim Rogers expects a multi-asset bubble to burst and the American economy to run into trouble.
George Soros' cofounder hopes to profit by shorting the "Magnificent Seven" stocks at the right time.
Rogers touted gold and silver, warned the inflation threat isn't over, and slammed the Fed.
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