Wednesday, September 17, 2008

Jim Rogers: People Don't Understand Commodities

In a recent talk by Jim Rogers while attending the introduction of the Birla Sun Life Commodity Equities Fund, he said that people at this time, overall, have no understanding of commodities.

He said concerning the current phase commodities are in: "Bull markets happen when people begin to understand about a particular asset class. That’s what is going to drive a long bull phase in commodities. Out of the thousands of mutual funds in US, only a few hundred invest in commodities. That is going to change.”

Rogers added that commodities are in a similar phase stocks were about 30 years ago, and said it's being spurred by supply and demand. "Supply down... demand going up? That’s what I call a bull market.”

Rogers is particularly bullish on agriculture within the overall commodity field. He also has a stake in Swiss francs, the Japanese yen, and the Chinese yuan.

While they are not being look upon as investment options at this time, Rogers is also bullish on coffee, sugar, cotton, zinc and silver over the long haul.

Rogers also encouraged the Indian crowd that if they wanted to become rich they should take up farming. He wasn't kidding.

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