Rogers International Commodities Index fund
Jim Rogers is known around the world for his expertise in commodities, as well as unique perspective on what's driving the global economy; whether it's positive or negative.
A number of years ago the prolific investor looked for a way to invest in a basket of commodities and didn't find much if anything that focused on that particular market.
So to that end, he designed the Rogers International Commodities Index (RICI) fund, which allows investors to invest in commodities in a way that is weighted by the commodity guru himself.
As Rogers points out in the description of the fund, it is not only weighted with regional or American-focused consumption, but takes in the entire world, as noted by the inclusion of rice in the index, one the more consumed foods in the world, yet left off a number of indexes.
For the purpose of making it easier for potential investors to track the Rogers International Commodities Index fund, Rogers only includes commodities traded on recognized exchanges. That way verification of performance is easy, quick and trustworthy.
A total of 35 commodities are traded on the Rogers International Commodities Index fund, and that's so a wide range of commodities can be included, giving investors access to an accurate measurement of overall commodity performance, and not overly weighted raw materials which could skew results in odd and unrepresentative ways.
The Rogers International Commodities Index fund is built to appeal to long term investors, and weights commodities accordingly. The purpose is to offer consistency and and stability that can be counted on year after year.
That has worked well for the fund over the 11 years it has operated, as it has produced a solid return of about 20 percent annually since its inception, and that has included two bubble markets it has had to operate under.
With commodities in the middle of a bull market and emerging markets set to start spending again, it's a good bet that the Rogers International Commodities Index fund, and other commodity funds will perform strongly for years into the future.
Rogers International Commodities Index fund
Showing posts with label Jim Rogers Holdings. Show all posts
Showing posts with label Jim Rogers Holdings. Show all posts
Monday, January 4, 2010
Wednesday, December 9, 2009
Jim Rogers: Commodities Great Investment No Matter How Economy Goes
Commodity investor Jim Rogers says it doesn't matter whether the global economy is good or bad, commodities will do great for some time because historically when governments print money, commodity prices go up.
If and when the global economy does improve, than the growing middle classes in Asia, especially China, will generate huge demand for a large number of products, many of which will be commodities directly, or at minimum, commodities indirectly, through products which are manufactured using specific commodities as components of the process.
And as mentioned, if the economy doesn't improve for some time ahead, commodities are a great place to be based on investors looking to raw materials and some precious metals to protect against inflation and dropping value in the U.S. dollar. Printing money will continue to pressure the U.S. dollar downward in value, so that should be a big part of the picture with commodities in the years ahead.
Rogers pays little attention to the inevitable swing in prices of commodities, as that's part of investing in the sector. What he's looking for now is commodities that have been depressed like agriculture, silver, natural gas and palladium.
While he remains bullish on gold, he's not going to buy any at this time, while he will continue to hold what he does own as well.
Rogers says we're in a cyclical bull market, and he has learned the hard way not to short commodities during those times.
The Rogers Commodity Index, which Rogers set up, has outperformed its more well know competitor the Reuters-Jefferies CRB commodities index in 2009, as it's up by close to 30 percent this year, while Reuters-Jefferies is only up by 17 percent.
If and when the global economy does improve, than the growing middle classes in Asia, especially China, will generate huge demand for a large number of products, many of which will be commodities directly, or at minimum, commodities indirectly, through products which are manufactured using specific commodities as components of the process.
And as mentioned, if the economy doesn't improve for some time ahead, commodities are a great place to be based on investors looking to raw materials and some precious metals to protect against inflation and dropping value in the U.S. dollar. Printing money will continue to pressure the U.S. dollar downward in value, so that should be a big part of the picture with commodities in the years ahead.
Rogers pays little attention to the inevitable swing in prices of commodities, as that's part of investing in the sector. What he's looking for now is commodities that have been depressed like agriculture, silver, natural gas and palladium.
While he remains bullish on gold, he's not going to buy any at this time, while he will continue to hold what he does own as well.
Rogers says we're in a cyclical bull market, and he has learned the hard way not to short commodities during those times.
The Rogers Commodity Index, which Rogers set up, has outperformed its more well know competitor the Reuters-Jefferies CRB commodities index in 2009, as it's up by close to 30 percent this year, while Reuters-Jefferies is only up by 17 percent.
Wednesday, November 19, 2008
Commodities: Jim Rogers TV: - Talking U.S. Dollar
Jim Rogers talking on various aspects of the U.S. dollar and why it doesn't have a bright future as a global commodity
Part One, Part Two, Part Three, Part Four
The U.S. dollar will no longer be the trusted commodity it has been in the past. Those days are over.
Part One, Part Two, Part Three, Part Four
The U.S. dollar will no longer be the trusted commodity it has been in the past. Those days are over.
Tuesday, November 4, 2008
Commodities: Jim Rogers Video Economic Issues
Jim Rogers video on commodities and other economic concerns.
Commodities: Jim Rogers Likes Silver
Jim Rogers said he likes commodity metal silver better than gold this year
Jim Rogers said in an interview Monday that he thinks silver will be a better investment than gold this year, as continued pressure to raise cash by large funds, central banks and possibly the International Monetary Fund (IMF) could continue to pressure the yellow metal down.
“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”
While the IMF has agreed to a plan to sell gold in May, it still has to gain legislative approval from member countries to go ahead with sales. To reduce a budget deficit, the IMF will sell 403.3 metric tons of gold if approved.
Although he believes silver will outperform gold, he said if gold continues to have downward pressure, he will start buying into it again.
He reiterated his assertions that the current commodity sell-off doesn't represent the underlying fundamentals, and they'll come back much higher.
Inflation and the ability to meet surging demand will push metal, energy and agricultural prices higher, said Rogers.
The emerging Chinese middle class pretty much guarantees this will happen, and once commodities begin their rebound, the commodity bull market will continue on and last longer than projected because of this temporary slowdown.
It'll be interesting to see whether silver indeed does surpass gold in 2009 in the commodity sector.
Jim Rogers said in an interview Monday that he thinks silver will be a better investment than gold this year, as continued pressure to raise cash by large funds, central banks and possibly the International Monetary Fund (IMF) could continue to pressure the yellow metal down.
“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”
While the IMF has agreed to a plan to sell gold in May, it still has to gain legislative approval from member countries to go ahead with sales. To reduce a budget deficit, the IMF will sell 403.3 metric tons of gold if approved.
Although he believes silver will outperform gold, he said if gold continues to have downward pressure, he will start buying into it again.
He reiterated his assertions that the current commodity sell-off doesn't represent the underlying fundamentals, and they'll come back much higher.
Inflation and the ability to meet surging demand will push metal, energy and agricultural prices higher, said Rogers.
The emerging Chinese middle class pretty much guarantees this will happen, and once commodities begin their rebound, the commodity bull market will continue on and last longer than projected because of this temporary slowdown.
It'll be interesting to see whether silver indeed does surpass gold in 2009 in the commodity sector.
Tuesday, October 21, 2008
Commodities are in "Forced Liquidation" - Jim Rogers
Jim Rogers, CEO of Rogers Holdings said in an interview with Commodity Online that the commodity bull market will last longer than he originally anticipated because of the financial crisis around the world.
Historically, said Rogers, there have been eight or nine periods of what he calls "forced liquidation," where people sell everything regardless of the underlying fundamentals. He added that this is one of those periods.
He explains it this way: ”The cyclical demand for commodities may slow, but the secular supply will be badly affected so the commodity bull market will last longer and go further in the end.”
What this means is the rate of growth will slow, but nothing has changed in the long-term demand for commodities in the emerging markets. Natural resources will continue to be needed for many years to come, and that means commodities will remain in demand.
Illiquidity is what's holding things back at this time, not the demand that hasn't changed. As Rogers said, people are being forced to liguidate in order to get access to immediate funds. When that's over, we'll go back to the commodity bull market as defined by the fundamentals of the market.
Other Insights from Jim Rogers:
Jim Rogers: Where he's putting his money
Jim Rogers: We're Facing an "Inflation Holocaust"
Jim Rogers: History Reveals Bailouts do more Harm than Good
Jim Rogers: Government Bailout a Huge Mistake
Jim Rogers: People Don't Understand Commodities
Jim Rogers Says Commodities Should Come Back Strongly
Historically, said Rogers, there have been eight or nine periods of what he calls "forced liquidation," where people sell everything regardless of the underlying fundamentals. He added that this is one of those periods.
He explains it this way: ”The cyclical demand for commodities may slow, but the secular supply will be badly affected so the commodity bull market will last longer and go further in the end.”
What this means is the rate of growth will slow, but nothing has changed in the long-term demand for commodities in the emerging markets. Natural resources will continue to be needed for many years to come, and that means commodities will remain in demand.
Illiquidity is what's holding things back at this time, not the demand that hasn't changed. As Rogers said, people are being forced to liguidate in order to get access to immediate funds. When that's over, we'll go back to the commodity bull market as defined by the fundamentals of the market.
Other Insights from Jim Rogers:
Jim Rogers: Where he's putting his money
Jim Rogers: We're Facing an "Inflation Holocaust"
Jim Rogers: History Reveals Bailouts do more Harm than Good
Jim Rogers: Government Bailout a Huge Mistake
Jim Rogers: People Don't Understand Commodities
Jim Rogers Says Commodities Should Come Back Strongly
Friday, October 10, 2008
Commodities: Jim Rogers on "Inflation Holocaust"
Talking on CNBC Friday, billionaire investor Jim Rogers, CEO of Rogers Holdings and commodities expert, said we are facing an "inflation holocaust" because of government interference in the markets. He's right of course, as governments will have to issue more debt and print more money in an attempt to not allow the market to clean itself out as it has for a "few thousand years."
It is amazing to see the government to take these unprecidented steps in order to make it look like it has some value to the market. It's main and really only purpose in this arena should be to enforce contracts. Nothing else.
But as Rogers and many others are pointing out, this is in reality setting us up for an inflation disaster as the artificial propping up of poorly run companies will make us all pay a lot more for goods and services in the long run. The government and politians are counting on the general population to forget this as this go ahead in time.
Rogers added that we should simply allow businesses and people to go bankrupt in order to clean out the excesses and unhealthiness in the markets. That is how it's always been done in the past, and each time things start over again with many helpful lessons learned from the mistakes made.
In a desperate attempt to make prove they have relevancy to the general populations across the world, governments and politicians are scrambling to interfere and tread in places they have no idea of the consequences of their actions.
There is nothing more short-term in thinking than what is being wrongly foisted on people in American and across the world at this time. As Jim Rogers says, we are setting ourselves up for an inflation holocaust that will happen based solely on the actions of the U.S. governement, and other governments at this time.
Since when don't human beings have to go through failures and mistakes? When have we designated taxpayer dollars of responsible people to be used to bailout finance and business leaders for the poor decisions they've made?
As Rogers concluded concerning the upcoming G7 meeting where government leaders of the stronger economies are getting together in order to attempt of figure out a solution, "What they (G7 leaders) need to do is go down the bar and leave the rest of us alone."
Referring again to the usual solution by governments, printing more money and offering more debt will do more harm than anything else. It simply needs to be allowed to play out as it usually is. There's nothing the G7 countries will be able to do other than that.
These are markets made up of billions of actors and consumers. Nobody, no matter how much they try to convince us, is able to centrally plan or salvage this mess. Socialism has already proven itself a failure, and this is nothing more than corporate socialism.
As many people know in their individual lives, when they live in excess they will have to go through some real pain in order to overcome those excesses. For someone to interfere with that isn't kindness, but a form of hate, as they enable the person to continue on in their folly.
It's no different with government interference in the marketplace. To shore up poor management and irresponsible decisions isn't a form of help, it's only reinforcing terrible choices and behavior, and possibly setting the rest of us up for more and more significant pain in the near future.
See Video Here
Rogers maintains commodities will continue to be a good place to put your money. We're simply on pause for the time being.
It is amazing to see the government to take these unprecidented steps in order to make it look like it has some value to the market. It's main and really only purpose in this arena should be to enforce contracts. Nothing else.
But as Rogers and many others are pointing out, this is in reality setting us up for an inflation disaster as the artificial propping up of poorly run companies will make us all pay a lot more for goods and services in the long run. The government and politians are counting on the general population to forget this as this go ahead in time.
Rogers added that we should simply allow businesses and people to go bankrupt in order to clean out the excesses and unhealthiness in the markets. That is how it's always been done in the past, and each time things start over again with many helpful lessons learned from the mistakes made.
In a desperate attempt to make prove they have relevancy to the general populations across the world, governments and politicians are scrambling to interfere and tread in places they have no idea of the consequences of their actions.
There is nothing more short-term in thinking than what is being wrongly foisted on people in American and across the world at this time. As Jim Rogers says, we are setting ourselves up for an inflation holocaust that will happen based solely on the actions of the U.S. governement, and other governments at this time.
Since when don't human beings have to go through failures and mistakes? When have we designated taxpayer dollars of responsible people to be used to bailout finance and business leaders for the poor decisions they've made?
As Rogers concluded concerning the upcoming G7 meeting where government leaders of the stronger economies are getting together in order to attempt of figure out a solution, "What they (G7 leaders) need to do is go down the bar and leave the rest of us alone."
Referring again to the usual solution by governments, printing more money and offering more debt will do more harm than anything else. It simply needs to be allowed to play out as it usually is. There's nothing the G7 countries will be able to do other than that.
These are markets made up of billions of actors and consumers. Nobody, no matter how much they try to convince us, is able to centrally plan or salvage this mess. Socialism has already proven itself a failure, and this is nothing more than corporate socialism.
As many people know in their individual lives, when they live in excess they will have to go through some real pain in order to overcome those excesses. For someone to interfere with that isn't kindness, but a form of hate, as they enable the person to continue on in their folly.
It's no different with government interference in the marketplace. To shore up poor management and irresponsible decisions isn't a form of help, it's only reinforcing terrible choices and behavior, and possibly setting the rest of us up for more and more significant pain in the near future.
See Video Here
Rogers maintains commodities will continue to be a good place to put your money. We're simply on pause for the time being.
Wednesday, October 1, 2008
Jim Rogers: History Reveals Bailouts do more Harm than Good
The assertion by Jim Rogers that government intervention in the market will cause more pain then help is absolutely correct. Interference in the markets during the Great Depression, in reality, caused the Great Depression. Honest economists say it would have only lasted a very short time without interfence from the government.
If there hadn't been government interference during that time, the marketplace would have cleaned itself out and lasted only a very short time.
Our present situation
"Capitalism is where the market does its work. These guys [Alan Greenspan and Ben Bernanke], for the last 8 to 10 years, have refused to let the market do its work to clean itself out," Rogers said. "You let things collapse…and you have a clean growth afterwards."
The obsession by the professional politicians to become heroes in the eyes of the easily swayed population will eventually be destructive rather than helpful. They're doing it because they hope by time the next election cycle comes around people will forget what happened and vote them back into office.
Either that, or things will be so much worse than they are now because of government action, that politicians will be able to bluff their way through and make themselves look like they're fighting for Americans even more, even though they've made the problems worse.
It's unfortunate that Americans overall don't understand why these problems are happening and the source of them. Until we become more economically literate, the boom and bust cycles will continue as government continues to make problems worse by inserting their abusive policies into the marketplace.
As far as Rogers and what he's investing in now, he says commodities will continue to offer superior returns over stocks in the near future, and he's also investing in China as it loosens up its monetary policy.
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.
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.
Thursday, August 21, 2008
Jim Rogers Says Commodities Should Come Back Strongly
Commodity expert Jim Rogers said in an interview today that he sees commodities continuing on their long-term upswing, in spite of the recent fall in prices, eyeing it as a temporary downturn.
"I don't see that it's the end of the bull market,'' the chairman of Rogers Holdings, said in an interview in Bangkok. ``Until either a lot of supply comes on stream or the economy collapses, the bull market will continue."
Rogers added that he's looking at base metals again as a possible commodity strategy, saying, "I haven't bought any for awhile."
According to Rogers, the only thing he sees interfering with the long-term bull market in commodities is if the supply increases in a big way, or the economy collapses. If neither happens, he's positive the bull market will continue on.
Rogers is especially bullish on agricultural commodities, and separately in the Chinese economy; specifically in power generation sectors, infrastructure, education and tourism.
"I don't see that it's the end of the bull market,'' the chairman of Rogers Holdings, said in an interview in Bangkok. ``Until either a lot of supply comes on stream or the economy collapses, the bull market will continue."
Rogers added that he's looking at base metals again as a possible commodity strategy, saying, "I haven't bought any for awhile."
According to Rogers, the only thing he sees interfering with the long-term bull market in commodities is if the supply increases in a big way, or the economy collapses. If neither happens, he's positive the bull market will continue on.
Rogers is especially bullish on agricultural commodities, and separately in the Chinese economy; specifically in power generation sectors, infrastructure, education and tourism.
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