Jim Rogers on Trading
Of course Jim Rogers hasn't said this yet, but everything he does say underscores it, as Rogers isn't a trader. Let's immediately identify a trader. It's someone who moves in and out of the market trying to hit the big thing. This isn't investing, it's gambling, and an expensive form of gambling.
There was never a worst time in my investment life than when I was working for a brokerage and was bombarded with the next big thing about every 15 minutes. I was even (for a short time) caught up into doing the trading thing as the emotional swings in the office are hard to express unless you've been there, and they can pressure you immensely to do dumb things.
The reason I said in the title trading is for sissies, is because it doesn't take discipline and research to enter into a trade based for the most part on emotion and some type of "breaking tip" that you move on. Any wimp can do that.
It takes someone mature and disciplined to invest over the long haul, and Jim Rogers, others, and all research has shown this is the best way to build wealth.
Showing posts with label Jim Rogers Investments. Show all posts
Showing posts with label Jim Rogers Investments. Show all posts
Thursday, April 1, 2010
Wednesday, March 10, 2010
Jim Rogers' Investing Preparation
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Tuesday, March 2, 2010
Jim Rogers: Dark Stock Age for U.S.
Dark Age for Stocks in America Very Possible say Jim Rogers
Jim Rogers recently talked about something that has been on the minds of a number of stock investors, economists and analysts around the world, and that is whether or not stocks in the U.S. could be poised to continue on into a similar dark age of performance as Japan's stocks have been for years.
Rogers stated stocks in the U.S. could overall drop in value all the way up to 2030. One metric Rogers uses for the current situation is the Dow Jones Industrial Average, which over the last 10 years has actually fallen in value by 9 percent, from 11,497 to 10,428 during that time. He says he wouldn't be surprised to see this go on for ten to twenty more years.
For Japan's part, their Nikkei experienced an all-time high of 38,957 in December 2008, and today stands at about 18,300, and not even close to beginning to recover its value.
If you don't think this could happen to the U.S., Rogers cites a period of time starting in 1964 where the stock market didn't grow at all, and was the same price through 1982. Adding the strong inflation in that time and value was diminished even further, said Rogers.
Dark Age for Stocks in America Very Possible say Jim Rogers
Jim Rogers recently talked about something that has been on the minds of a number of stock investors, economists and analysts around the world, and that is whether or not stocks in the U.S. could be poised to continue on into a similar dark age of performance as Japan's stocks have been for years.
Rogers stated stocks in the U.S. could overall drop in value all the way up to 2030. One metric Rogers uses for the current situation is the Dow Jones Industrial Average, which over the last 10 years has actually fallen in value by 9 percent, from 11,497 to 10,428 during that time. He says he wouldn't be surprised to see this go on for ten to twenty more years.
For Japan's part, their Nikkei experienced an all-time high of 38,957 in December 2008, and today stands at about 18,300, and not even close to beginning to recover its value.
If you don't think this could happen to the U.S., Rogers cites a period of time starting in 1964 where the stock market didn't grow at all, and was the same price through 1982. Adding the strong inflation in that time and value was diminished even further, said Rogers.
Dark Age for Stocks in America Very Possible say Jim Rogers
Monday, February 22, 2010
Jim Rogers: Britain Bankrupt
Jim Rogers on what to invest in
In a recent interview, commodity investor Jim Rogers stated that Britain is bankrupt, and there's not a bank in the country that's not in trouble.
Other than oil and banking, the UK hasn't had much going for it, and oil is depleting while the UK banking industry is in shambles he said.
Jim Rogers reiterated that investing in real assets is the way to go over the next 30 years, and those that produce "real things," will dominate the business landscape.
Rogers recommends, as mentioned, real assets, raw materials, commodities, and to stay away from the U.S. dollar and sterling for sure. The currency Rogers says he's investing in now is the yen.
He also said he is buying China shares again, signifying he things they are near a bottom.
Jim Rogers on what to invest in
In a recent interview, commodity investor Jim Rogers stated that Britain is bankrupt, and there's not a bank in the country that's not in trouble.
Other than oil and banking, the UK hasn't had much going for it, and oil is depleting while the UK banking industry is in shambles he said.
Jim Rogers reiterated that investing in real assets is the way to go over the next 30 years, and those that produce "real things," will dominate the business landscape.
Rogers recommends, as mentioned, real assets, raw materials, commodities, and to stay away from the U.S. dollar and sterling for sure. The currency Rogers says he's investing in now is the yen.
He also said he is buying China shares again, signifying he things they are near a bottom.
Jim Rogers on what to invest in
Wednesday, February 10, 2010
Jim Rogers Joins Marc Faber on Leopard Capital Adivisory Council
Jim Rogers and Marc Faber, Sri Lanka
Jim Rogers and Marc Faber has been asked to sit on the advisory council of Leopard Capital, a private equity business which has launched one fund focusing on Sri Lanka, and is ready to launch another, which is what they're looking for the advise of Marc Faber and Jim Rogers on.
Jim Rogers is connected to a number of commodity ventures and indices, while Marc Faber is of course widely known for his Gloom, Boom and Doom Report newsletter, which focuses on unique investments around the globe.
This is interesting if for no other reason than very few people know a thing about Sri Lanka in the investment world, and it's not exactly near the top of places people and institutions are looking to to generate wealth.
At least some of what is offered in Sri Lanka will be known with the names of these two guys associated with it, and that will probably be good for Sri Lanka, and will definitely be good for Leopard Capital, as both investors has strong and committed followers who will definitely take at least a peek under the hood of the market now that Rogers and Faber are connected to it.
For Jim Rogers, he's been an evangelist for the Asian market for many years, but I can't recall him ever mentioning Sri Lanka in any of his talks or communications. Interesting news as to why both of these investors chose to respond to Leopard Capital in this, and I think we'll find out sometime fairly soon if it was only the money paid to do it or there's something in the country attractive to invest in.
Jim Rogers and Marc Faber, Sri Lanka
Jim Rogers and Marc Faber has been asked to sit on the advisory council of Leopard Capital, a private equity business which has launched one fund focusing on Sri Lanka, and is ready to launch another, which is what they're looking for the advise of Marc Faber and Jim Rogers on.
Jim Rogers is connected to a number of commodity ventures and indices, while Marc Faber is of course widely known for his Gloom, Boom and Doom Report newsletter, which focuses on unique investments around the globe.
This is interesting if for no other reason than very few people know a thing about Sri Lanka in the investment world, and it's not exactly near the top of places people and institutions are looking to to generate wealth.
At least some of what is offered in Sri Lanka will be known with the names of these two guys associated with it, and that will probably be good for Sri Lanka, and will definitely be good for Leopard Capital, as both investors has strong and committed followers who will definitely take at least a peek under the hood of the market now that Rogers and Faber are connected to it.
For Jim Rogers, he's been an evangelist for the Asian market for many years, but I can't recall him ever mentioning Sri Lanka in any of his talks or communications. Interesting news as to why both of these investors chose to respond to Leopard Capital in this, and I think we'll find out sometime fairly soon if it was only the money paid to do it or there's something in the country attractive to invest in.
Jim Rogers and Marc Faber, Sri Lanka
Wednesday, February 3, 2010
Jim Rogers: Identifying a Bubble
Jim Rogers: How to identify a bubble
Jim Rogers has been in the news a lot over the last couple of years, and one of the more recent issues he has been tackling has been the China housing market and whether it's in a bubble or not.
While he acknowledges the China housing market is overheated, especially in urban areas, it doesn't mean the Chinese economy as a whole is approaching a bubble.
What was important in this discussion is Rogers' instruction on what a bubble is (no matter what the sector).
Here's the official Jim Rogers definition of what a bubble is:
“Maybe you have too much inflation and credit creation. But that doesn’t mean there’s a bubble. A bubble is when everybody is buying everything every day, and people can hardly wait to get more.”
This is why Rogers correctly states that gold isn't in a bubble, as the average investor hasn't really began to invest in gold, making the idea of a bubble, as Rogers defines it above, largely irrelevant.
The bottom line when looking to see if a sector or company may be in a bubble (which I agree with), is if everyone has gotten on the bandwagon and is investing in it as a herd, with no other reason that everyone else is doing it.
Jim Rogers: How to identify a bubble
Jim Rogers has been in the news a lot over the last couple of years, and one of the more recent issues he has been tackling has been the China housing market and whether it's in a bubble or not.
While he acknowledges the China housing market is overheated, especially in urban areas, it doesn't mean the Chinese economy as a whole is approaching a bubble.
What was important in this discussion is Rogers' instruction on what a bubble is (no matter what the sector).
Here's the official Jim Rogers definition of what a bubble is:
“Maybe you have too much inflation and credit creation. But that doesn’t mean there’s a bubble. A bubble is when everybody is buying everything every day, and people can hardly wait to get more.”
This is why Rogers correctly states that gold isn't in a bubble, as the average investor hasn't really began to invest in gold, making the idea of a bubble, as Rogers defines it above, largely irrelevant.
The bottom line when looking to see if a sector or company may be in a bubble (which I agree with), is if everyone has gotten on the bandwagon and is investing in it as a herd, with no other reason that everyone else is doing it.
Jim Rogers: How to identify a bubble
Saturday, January 16, 2010
Jim Rogers | Inflation Already Here
Jim Rogers and Inflation
Inflation is a surety says Jim Rogers, and in fact we're already experiencing inflation, even though some governments are lying about it.
Rogers cites a couple of issues confirming inflation is already here and will continue on for some time. First, he points us in the direction of shortage around the world in almost everything. Consequently, in that environment prices will continue to rise.
Second, countries haven't stopped printing money, and printing money always brings with it the consequences of inflation.
Not only are those things happening now, but they'll continue to happen in the future.
Again, this is why commodities will be such a good place to be, although we do need to keep track of which individual commodities are at their top prices, and which ones are suppressed.
AS of this writing, commodities like silver and agriculture are at good prices, and so are something to watch carefully.
Jim Rogers and Inflation
Inflation is a surety says Jim Rogers, and in fact we're already experiencing inflation, even though some governments are lying about it.
Rogers cites a couple of issues confirming inflation is already here and will continue on for some time. First, he points us in the direction of shortage around the world in almost everything. Consequently, in that environment prices will continue to rise.
Second, countries haven't stopped printing money, and printing money always brings with it the consequences of inflation.
Not only are those things happening now, but they'll continue to happen in the future.
Again, this is why commodities will be such a good place to be, although we do need to keep track of which individual commodities are at their top prices, and which ones are suppressed.
AS of this writing, commodities like silver and agriculture are at good prices, and so are something to watch carefully.
Jim Rogers and Inflation
Jim Rogers | Why Buy Commodities?
Jim Rogers and Commodities
In a recent interview, Jim Rogers again made his simple case for why commodities will be the best investment and investment sector going forward.
With the global recession still in force, when there is a real recovery, commodities will definitely go up in value based on demand and the resultant higher prices.
If things continue to get worse or stay about at the same level economically as they are now, then we'll see more printing of money from central banks around the world, which will make commodities the place to have your money as well.
So either way, commodities, according to Jim Rogers, will be a strong investment class whether the economy recovers or struggles.
Jim Rogers and Commodities
In a recent interview, Jim Rogers again made his simple case for why commodities will be the best investment and investment sector going forward.
With the global recession still in force, when there is a real recovery, commodities will definitely go up in value based on demand and the resultant higher prices.
If things continue to get worse or stay about at the same level economically as they are now, then we'll see more printing of money from central banks around the world, which will make commodities the place to have your money as well.
So either way, commodities, according to Jim Rogers, will be a strong investment class whether the economy recovers or struggles.
Jim Rogers and Commodities
Jim Rogers | Buy Silver
Silver Prices Going Up
Talking about base metals recently, the best commodity play in that sector, according to Jim Rogers is probably silver.
While most base metals like copper have been driven up in price recently, silver largely remains at low levels, making it a good buy at this time.
Even though Rogers has no interest in base metals at these prices, he does say it would be a good idea to keep your investment in them and not sell, as there's little or no activity in production which would change the base metal production in the years ahead, while demand is sure to increase, driving up prices.
But as of now, silver prices are one of the best base metal buys, and should make investors a lot of money over the long term if they buy low.
Jim Rogers and Silver Prices Going Up
Talking about base metals recently, the best commodity play in that sector, according to Jim Rogers is probably silver.
While most base metals like copper have been driven up in price recently, silver largely remains at low levels, making it a good buy at this time.
Even though Rogers has no interest in base metals at these prices, he does say it would be a good idea to keep your investment in them and not sell, as there's little or no activity in production which would change the base metal production in the years ahead, while demand is sure to increase, driving up prices.
But as of now, silver prices are one of the best base metal buys, and should make investors a lot of money over the long term if they buy low.
Jim Rogers and Silver Prices Going Up
Monday, January 4, 2010
Rogers International Commodities Index fund
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
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
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.
Monday, September 21, 2009
Jim Rogers: Investing in Commodities
Investing in Commodities
We talk a lot about the ongoing bull market in commodities, which will no doubt resume as the economic crisis winds down. Recently Jim Rogers confirmed what he mostly reiterates all the time, and that is the best way to buy commodities is to buy them direct.
Unless somone has the time to research and understands the variable connected to successfully picking a stock, it's far better to invest in commodities directly than any other way, and studies confirm this will produce the best results.
what's simple about investing in commodities this way is you then have to only identify supply and demand to make a profit one way or the other, and that vastly simplifies the process and narrows things down for you.
Investing in Commodities
We talk a lot about the ongoing bull market in commodities, which will no doubt resume as the economic crisis winds down. Recently Jim Rogers confirmed what he mostly reiterates all the time, and that is the best way to buy commodities is to buy them direct.
Unless somone has the time to research and understands the variable connected to successfully picking a stock, it's far better to invest in commodities directly than any other way, and studies confirm this will produce the best results.
what's simple about investing in commodities this way is you then have to only identify supply and demand to make a profit one way or the other, and that vastly simplifies the process and narrows things down for you.
Investing in Commodities
Wednesday, December 10, 2008
The Rogers(TM)-Van Eck Hard Assets Producers Index Returned -49.1% Year-to-Date Through November 2008
NEW YORK, Dec 09, 2008 (BUSINESS WIRE) -- The Rogers(TM)-Van Eck Hard Assets Producers Index (Bloomberg ticker: RVEI), returned -4.6% in November 2008 and -49.1% year-to-date through end-November 2008.
RVEI was launched in June 2008 and is viewed by many as the definitive global benchmark for commodity equities. Jim Rogers, the well known international investor, is chairman of the RVE Index Committee, and was actively involved in the construction of the index in partnership with S-Network Global Indexes, LLC. Van Eck Global has endorsed the index.
RVEI is comprehensive in construction, covering 328 companies in 41 countries and 6 sectors as of end-November. The index includes the world's largest and most prominent publicly traded companies engaged in the production and distribution of hard assets and related products and services, and captures more than 90% of the industry's global stock market capitalization. The sectors covered include energy, agriculture, base metals, precious metals, forest products and water and renewable energy (solar and wind).
The index is pure-play in its focus, including only those companies that derive at least 50% of their revenues from the applicable commodity sector. The sole exception is water, where constituents must generate at least 25% of their revenues from that industry. At end-November, the top three holdings were Exxon Mobil Corp., Monsanto Co., and Chevron Corp., with weightings of 8.7%, 7.6% and 3.4%, respectively.
Market Vectors--RVE Hard Assets Producers ETF (ticker: HAP) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of RVEI. HAP generally holds all the securities that make up RVEI in proportion to their Index weightings.
*Past performance does not guarantee future results. RVEI's return does not represent the performance of any fund. RVEI charges no fees, including management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Investors cannot invest directly in RVEI.
Performance information presented for RVEI covering the period prior to June 16, 2008 is based on hypothetical, back-tested data. Prior to June 16, 2008, RVEI was not calculated in real time by an independent calculation agent. Hypothetical, back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown.
About Jim Rogers
Jim Rogers is the well-known international investor, financial author and commentator. He was a co-founder of the Quantum Fund and served as a professor of finance at the Columbia University School of Business.
"Jim Rogers," "James Beeland Rogers, Jr.," and "Rogers," are trademarks, service marks and/or registered trademarks of Beeland Interests, Inc. ("Beeland Interests"), which is owned and controlled by James Beeland Rogers, Jr., and are used subject to license. The personal names and likeness of Jim Rogers/James Beeland Rogers, Jr. are owned and licensed by James Beeland Rogers, Jr.
HAP is not sponsored, endorsed, sold or promoted by Beeland Interests or James Beeland Rogers, Jr. Neither Beeland Interests nor James Beeland Rogers, Jr. makes any representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this material, or the advisability of investing in securities or commodities generally, or in HAP or in futures particularly.
BEELAND INTERESTS AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY OWNERS OF THE SHARES OF HAP, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF RVEI. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BEELAND INTERESTS OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.
About The Rogers(TM)-Van Eck Hard Assets Producers Index (RVEI)
RVEI is a rules-based index intended to give investors a means of tracking the overall performance of a global universe of listed companies engaged in the production and distribution of hard assets and related products and services. The index was developed in concert with commodities investor Jim Rogers and is endorsed by Van Eck Global. Sector weights are set annually based on estimates of global hard assets consumption, and stock weights within sectors are based on their market capitalization, float-adjusted and modified to conform to various asset diversification requirements, which are applied in conjunction with the scheduled quarterly adjustments to the index. Index values are calculated on both a price-only and total-return basis.
About S-Network Global Indexes, LLC
S-Network Global Indexes, LLC is a publisher and developer of proprietary and custom indexes. Since its founding in 1997, S-Network has worked with many of the leading financial services firms in the world on index development, indexation and index-based products, including exchange-traded funds and exchange-traded notes. S-Network currently publishes over twenty benchmark indexes that are licensed to asset managers and investment banks throughout the world. RVEI is part of the RVE Family of Indexes published by S-Network, which includes five additional related indexes: The RVE Composite Index (RVEC), The RVE Liquid Index (RVEXL), The RVE Energy Producers Index (RVEE), The RVE Agricultural Producers Index (RVEA) and The RVE Metals Producers Index (RVEM).
The Rogers(TM)-Van Eck Hard Assets Producers Index (RVEI) has been licensed by Van Eck Associates Corporation from S-Network Global Indexes, LLC for use in connection with Market Vectors-RVE Hard Assets Producers ETF (HAP). HAP is not sponsored, endorsed, sold or promoted by S-Network Global Indexes, LLC, which makes no representation regarding the advisability of investing in HAP.
About Van Eck Global
Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today the firm continues the 50+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes.
Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation's first gold mining ETF. Today, Market Vectors ETFs and ETNs span several asset classes, including equities, municipal bonds and currency markets.
Van Eck Global also offers mutual funds, insurance trust funds, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global's investment products are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
VAN ECK AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED AS TO RESULTS TO BE OBTAINED BY OWNERS OF HAP, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF RVEI. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL VAN ECK OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.
HAP is subject to various risks associated with making investments in companies engaged in producing and distributing hard assets and related products and services, such as commodity price volatility, changes in government policies/regulations and world political and economic developments. Additional risks include competitive pressures, technological advances and/or obsolescence, the depletion of resources, labor relations issues, risks associated with foreign investments, a high degree of volatility and the potential of significant loss. The Funds may loan their securities, which may subject them to additional credit and counterparty risk.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
Investors may call 1.888.MKT.VCTR or visit www.vaneck.com/HAPetf for a free prospectus. They should consider the investment objective, risks, and charges and expenses of Market Vectors-RVE Hard Assets Producers ETF carefully before investing. The prospectus contains this and other information about HAP. Please read the prospectus carefully before investing.
Please call 1.888.MKT.VCTR or visit www.vaneck.com/HAPetf for the most recent month-end performance of Market Vectors-RVE Hard Assets Producers ETF. This information will be available no later than seven business days after the most recent month end.
Van Eck Securities Corporation, Distributor, 99 Park Avenue, New York, NY 10016
SOURCE: Van Eck Global
MacMillan Communications
Mike MacMillan / Lindsey Wetmiller, 212-473-4442
Lindsey@macmillancom.com
Copyright Business Wire 2008
RVEI was launched in June 2008 and is viewed by many as the definitive global benchmark for commodity equities. Jim Rogers, the well known international investor, is chairman of the RVE Index Committee, and was actively involved in the construction of the index in partnership with S-Network Global Indexes, LLC. Van Eck Global has endorsed the index.
RVEI is comprehensive in construction, covering 328 companies in 41 countries and 6 sectors as of end-November. The index includes the world's largest and most prominent publicly traded companies engaged in the production and distribution of hard assets and related products and services, and captures more than 90% of the industry's global stock market capitalization. The sectors covered include energy, agriculture, base metals, precious metals, forest products and water and renewable energy (solar and wind).
The index is pure-play in its focus, including only those companies that derive at least 50% of their revenues from the applicable commodity sector. The sole exception is water, where constituents must generate at least 25% of their revenues from that industry. At end-November, the top three holdings were Exxon Mobil Corp., Monsanto Co., and Chevron Corp., with weightings of 8.7%, 7.6% and 3.4%, respectively.
Market Vectors--RVE Hard Assets Producers ETF (ticker: HAP) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of RVEI. HAP generally holds all the securities that make up RVEI in proportion to their Index weightings.
*Past performance does not guarantee future results. RVEI's return does not represent the performance of any fund. RVEI charges no fees, including management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Investors cannot invest directly in RVEI.
Performance information presented for RVEI covering the period prior to June 16, 2008 is based on hypothetical, back-tested data. Prior to June 16, 2008, RVEI was not calculated in real time by an independent calculation agent. Hypothetical, back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown.
About Jim Rogers
Jim Rogers is the well-known international investor, financial author and commentator. He was a co-founder of the Quantum Fund and served as a professor of finance at the Columbia University School of Business.
"Jim Rogers," "James Beeland Rogers, Jr.," and "Rogers," are trademarks, service marks and/or registered trademarks of Beeland Interests, Inc. ("Beeland Interests"), which is owned and controlled by James Beeland Rogers, Jr., and are used subject to license. The personal names and likeness of Jim Rogers/James Beeland Rogers, Jr. are owned and licensed by James Beeland Rogers, Jr.
HAP is not sponsored, endorsed, sold or promoted by Beeland Interests or James Beeland Rogers, Jr. Neither Beeland Interests nor James Beeland Rogers, Jr. makes any representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this material, or the advisability of investing in securities or commodities generally, or in HAP or in futures particularly.
BEELAND INTERESTS AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY OWNERS OF THE SHARES OF HAP, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF RVEI. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BEELAND INTERESTS OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.
About The Rogers(TM)-Van Eck Hard Assets Producers Index (RVEI)
RVEI is a rules-based index intended to give investors a means of tracking the overall performance of a global universe of listed companies engaged in the production and distribution of hard assets and related products and services. The index was developed in concert with commodities investor Jim Rogers and is endorsed by Van Eck Global. Sector weights are set annually based on estimates of global hard assets consumption, and stock weights within sectors are based on their market capitalization, float-adjusted and modified to conform to various asset diversification requirements, which are applied in conjunction with the scheduled quarterly adjustments to the index. Index values are calculated on both a price-only and total-return basis.
About S-Network Global Indexes, LLC
S-Network Global Indexes, LLC is a publisher and developer of proprietary and custom indexes. Since its founding in 1997, S-Network has worked with many of the leading financial services firms in the world on index development, indexation and index-based products, including exchange-traded funds and exchange-traded notes. S-Network currently publishes over twenty benchmark indexes that are licensed to asset managers and investment banks throughout the world. RVEI is part of the RVE Family of Indexes published by S-Network, which includes five additional related indexes: The RVE Composite Index (RVEC), The RVE Liquid Index (RVEXL), The RVE Energy Producers Index (RVEE), The RVE Agricultural Producers Index (RVEA) and The RVE Metals Producers Index (RVEM).
The Rogers(TM)-Van Eck Hard Assets Producers Index (RVEI) has been licensed by Van Eck Associates Corporation from S-Network Global Indexes, LLC for use in connection with Market Vectors-RVE Hard Assets Producers ETF (HAP). HAP is not sponsored, endorsed, sold or promoted by S-Network Global Indexes, LLC, which makes no representation regarding the advisability of investing in HAP.
About Van Eck Global
Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today the firm continues the 50+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes.
Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation's first gold mining ETF. Today, Market Vectors ETFs and ETNs span several asset classes, including equities, municipal bonds and currency markets.
Van Eck Global also offers mutual funds, insurance trust funds, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global's investment products are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
VAN ECK AND ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR IMPLIED AS TO RESULTS TO BE OBTAINED BY OWNERS OF HAP, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF RVEI. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL VAN ECK OR ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.
HAP is subject to various risks associated with making investments in companies engaged in producing and distributing hard assets and related products and services, such as commodity price volatility, changes in government policies/regulations and world political and economic developments. Additional risks include competitive pressures, technological advances and/or obsolescence, the depletion of resources, labor relations issues, risks associated with foreign investments, a high degree of volatility and the potential of significant loss. The Funds may loan their securities, which may subject them to additional credit and counterparty risk.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
Investors may call 1.888.MKT.VCTR or visit www.vaneck.com/HAPetf for a free prospectus. They should consider the investment objective, risks, and charges and expenses of Market Vectors-RVE Hard Assets Producers ETF carefully before investing. The prospectus contains this and other information about HAP. Please read the prospectus carefully before investing.
Please call 1.888.MKT.VCTR or visit www.vaneck.com/HAPetf for the most recent month-end performance of Market Vectors-RVE Hard Assets Producers ETF. This information will be available no later than seven business days after the most recent month end.
Van Eck Securities Corporation, Distributor, 99 Park Avenue, New York, NY 10016
SOURCE: Van Eck Global
MacMillan Communications
Mike MacMillan / Lindsey Wetmiller, 212-473-4442
Lindsey@macmillancom.com
Copyright Business Wire 2008
Tuesday, November 4, 2008
Commodities: Jim Rogers Video Economic Issues
Jim Rogers video on commodities and other economic concerns.
Commodities: Jim Rogers - America is bankrupt
Commodities will increase in price as last bubble - US Treasury Bonds - bursts!
America is bankrupt, according to investment legend Jim Rogers. "The American government bonds are the world’s last bubble and the price of commodities has to increase."
Charismatic
The famous and charismatic investor, guru if you will, Jim Rogers, visited ABN Amro Netherlands last Friday. RTL Z was at ABN headquarters as well and recorded a number of statements, investment tips and opinions about the world economy.
Rogers
During the seventies Jim Rogers (66) managed a successful hedge fund with George Soros. After that, he traveled and went into commodities.
Last Friday Rogers went at it in front of a roomful of ABN private banking clients. We had an exclusive 15-minute interview with Rogers.
The most important points:
America is bankrupt. American government bonds are extremely overvalued. "The world’s last bubble." America is in debt for over 13.000 billion (13 trillion) dollar and adds a 1.000 billion dollar debt each year. According to Rogers this can not continue for long. Therefore, he went short in long-term US goverment bonds. “These bonds have peaked.” By the way: Rogers owns Dutch government bonds. “They are safe.”
"The fact that the dollar is gaining rapidly is only temporary", Rogers says. “All hedge funds were short on the dollar and because of the appreciation of the dollar there is a short squeeze for the dollar. Managers have to close thier positions and they have to buy dollars instead.” “This is temporary, within a year you have to get rid of the dollar. Fundamentally it is a drama.”
Commodities
Last year we spoke Rogers as well. At that time he advised us to invest blindly in commodities and agriculture. That was a bad advice, because Rogers’ commodities index (Rici) has fallen around 40 per cent last year, while ABN’s African Commodities Certificate dropped even from 11 euros to 5 euros during that time.
Oil
Rogers: "Whether oil costs 45 or 145 dollars, it doesn’t really matter. What does matter is that with oil, like with many other commodities, supply is decreasing while demand is increasing. In the long run this will result in a considerable increase in prices."
"The question is not if the price of a barrel of oil will increase again, but how expensive a barrel of oil will be eventually?"
"The oil supply will fall with 6 to 9 per cent each year, according to the IAE. The demand for oil will increase in China and developing countries. This has nothing to do with economy, the market is simple. It is simply the law of supply and demand."
High inflation
Rogers has been telling his commodity-story for a few years now. On Friday he sighed while saying: "People don’t understand that the commodity-market will be bullish, this will lead to high inflation."
Commodity prices will be a lot higher in the future than they are now.
"The world is going to change, there is no way around it. If you don’t understand that and you don’t adapt you will be suffering in five years. The Chinese see on TV how we live in the West. They want that too! That generates an enormous demand for products and materials."
"All countries in the world have been printing money, the United States in particular. That created a huge amount of money, resulting in the icing on the cake for commodity prices. But fundamentally you have to look at supply and demand."
The United States
Rogers has been negative about the United States for a long time. "You should be worried, America is out of control". The enemies of the United States are currently looking into how to profit from the weaknesses of the United States. When we asked him: Obama or McCain? he answered: "Neither of them. They are both turkeys, they take the wrong decicions."
Bernanke or Trichet?
Rogers is not a big fan of Bernanke, the president of the Federal Reserve. With a big smile Rogers tells us: "Bernanke will continue to print money until there are no trees left in America."
He is more positive about Trichet of the ECB. At least he knows what he is doing and what it’s all about.""
Banks
Rogers is fiercely against bailing out the banks. "That has never worked. Let them go bankrupt. Right now bad-managed banks are saved with money from good banks and from you and me. After that, the failing but nationalized banks are going to compete with the well-managed banks and they gain their market share. Ridiculous. The Bail-out plan is a disaster. In 1929 we had a recession but after the government interfered, it became a depression. You should not interfere."
Stocks
Rogers: "You can make good money with stock-picking, perhaps even more than with commodities, but only if you pick the right equity at the right moment. The stockmarket in the west is still too expensive. But the market is extremely volatile. In the five years to come you can earn money with trading ranges".
China and Russia
"Do know know what the problem is? When at work, the Chinese people ask when they can work and what they can do. We ask how day's off we have. That’s a big difference."
Rogers has bought Chinese equities in the last few weeks. "I don’t know if we have reached the bottom, but the market is low. I am a bad timer, by the way."
"My daughter is five years old and she speaks Mandarin fluently. After the dollar has collapsed as a world currency, there is only one currency that could take over that role: the renminbi. That could happen in 15 to 20 years. Other currencies cannot take over the role of the dollar, including the euro."
Russia
The former Soviet Union will be split up in even more smaller countries. And with that, there will be some wars."
"In Russia you are lucky if they kill you right away. You are unlucky if they first arrest you, then keep you in prisson for 15 years, torture you and kill you after that". He joked.
"What you see therby is that the Russians take their capital abroad, while the Chinese take it home."
City or countryside?
According to Rogers farmers have a bright future. "within a few years farmers will drive Maserati’s and all stockbrokers will be cabdrivers."
In Holland you could have a farm with a lot of land at the moment. “Agriculture has been out of vogue for 30 years, but now it will be hot because the demand for food will increase greatly."
“The stupidest thing you can do right now is to sell your farm and buy a house in the city instead. The housing market is in decline."
War
And finally: "If a war breaks out, it will begin in the Middle East. Amsterdam will be last. I would love to live here if the weather was any better... Amsterdam should have been 600 miles further to the south!"
The Treasury bond market continues to look like it's about to burst, and commodities will be the only place of safety left for investors.
America is bankrupt, according to investment legend Jim Rogers. "The American government bonds are the world’s last bubble and the price of commodities has to increase."
Charismatic
The famous and charismatic investor, guru if you will, Jim Rogers, visited ABN Amro Netherlands last Friday. RTL Z was at ABN headquarters as well and recorded a number of statements, investment tips and opinions about the world economy.
Rogers
During the seventies Jim Rogers (66) managed a successful hedge fund with George Soros. After that, he traveled and went into commodities.
Last Friday Rogers went at it in front of a roomful of ABN private banking clients. We had an exclusive 15-minute interview with Rogers.
The most important points:
America is bankrupt. American government bonds are extremely overvalued. "The world’s last bubble." America is in debt for over 13.000 billion (13 trillion) dollar and adds a 1.000 billion dollar debt each year. According to Rogers this can not continue for long. Therefore, he went short in long-term US goverment bonds. “These bonds have peaked.” By the way: Rogers owns Dutch government bonds. “They are safe.”
"The fact that the dollar is gaining rapidly is only temporary", Rogers says. “All hedge funds were short on the dollar and because of the appreciation of the dollar there is a short squeeze for the dollar. Managers have to close thier positions and they have to buy dollars instead.” “This is temporary, within a year you have to get rid of the dollar. Fundamentally it is a drama.”
Commodities
Last year we spoke Rogers as well. At that time he advised us to invest blindly in commodities and agriculture. That was a bad advice, because Rogers’ commodities index (Rici) has fallen around 40 per cent last year, while ABN’s African Commodities Certificate dropped even from 11 euros to 5 euros during that time.
Oil
Rogers: "Whether oil costs 45 or 145 dollars, it doesn’t really matter. What does matter is that with oil, like with many other commodities, supply is decreasing while demand is increasing. In the long run this will result in a considerable increase in prices."
"The question is not if the price of a barrel of oil will increase again, but how expensive a barrel of oil will be eventually?"
"The oil supply will fall with 6 to 9 per cent each year, according to the IAE. The demand for oil will increase in China and developing countries. This has nothing to do with economy, the market is simple. It is simply the law of supply and demand."
High inflation
Rogers has been telling his commodity-story for a few years now. On Friday he sighed while saying: "People don’t understand that the commodity-market will be bullish, this will lead to high inflation."
Commodity prices will be a lot higher in the future than they are now.
"The world is going to change, there is no way around it. If you don’t understand that and you don’t adapt you will be suffering in five years. The Chinese see on TV how we live in the West. They want that too! That generates an enormous demand for products and materials."
"All countries in the world have been printing money, the United States in particular. That created a huge amount of money, resulting in the icing on the cake for commodity prices. But fundamentally you have to look at supply and demand."
The United States
Rogers has been negative about the United States for a long time. "You should be worried, America is out of control". The enemies of the United States are currently looking into how to profit from the weaknesses of the United States. When we asked him: Obama or McCain? he answered: "Neither of them. They are both turkeys, they take the wrong decicions."
Bernanke or Trichet?
Rogers is not a big fan of Bernanke, the president of the Federal Reserve. With a big smile Rogers tells us: "Bernanke will continue to print money until there are no trees left in America."
He is more positive about Trichet of the ECB. At least he knows what he is doing and what it’s all about.""
Banks
Rogers is fiercely against bailing out the banks. "That has never worked. Let them go bankrupt. Right now bad-managed banks are saved with money from good banks and from you and me. After that, the failing but nationalized banks are going to compete with the well-managed banks and they gain their market share. Ridiculous. The Bail-out plan is a disaster. In 1929 we had a recession but after the government interfered, it became a depression. You should not interfere."
Stocks
Rogers: "You can make good money with stock-picking, perhaps even more than with commodities, but only if you pick the right equity at the right moment. The stockmarket in the west is still too expensive. But the market is extremely volatile. In the five years to come you can earn money with trading ranges".
China and Russia
"Do know know what the problem is? When at work, the Chinese people ask when they can work and what they can do. We ask how day's off we have. That’s a big difference."
Rogers has bought Chinese equities in the last few weeks. "I don’t know if we have reached the bottom, but the market is low. I am a bad timer, by the way."
"My daughter is five years old and she speaks Mandarin fluently. After the dollar has collapsed as a world currency, there is only one currency that could take over that role: the renminbi. That could happen in 15 to 20 years. Other currencies cannot take over the role of the dollar, including the euro."
Russia
The former Soviet Union will be split up in even more smaller countries. And with that, there will be some wars."
"In Russia you are lucky if they kill you right away. You are unlucky if they first arrest you, then keep you in prisson for 15 years, torture you and kill you after that". He joked.
"What you see therby is that the Russians take their capital abroad, while the Chinese take it home."
City or countryside?
According to Rogers farmers have a bright future. "within a few years farmers will drive Maserati’s and all stockbrokers will be cabdrivers."
In Holland you could have a farm with a lot of land at the moment. “Agriculture has been out of vogue for 30 years, but now it will be hot because the demand for food will increase greatly."
“The stupidest thing you can do right now is to sell your farm and buy a house in the city instead. The housing market is in decline."
War
And finally: "If a war breaks out, it will begin in the Middle East. Amsterdam will be last. I would love to live here if the weather was any better... Amsterdam should have been 600 miles further to the south!"
The Treasury bond market continues to look like it's about to burst, and commodities will be the only place of safety left for investors.
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.
Monday, November 3, 2008
Commodities: Jim Rogers and Long Term Outlook
Commodity investors must have long term outlook says Jim Rogers
Jim Rogers has been known for saying he's the worst trader there is, and a terrible market timer.
The reason behind why he says it? We shouldn't think of ourselves or act like traders or market timers. History has proven that buying at low prices and holding on for the long haul far outperforms trying to time or trade the markets.
Warren Buffett of course also holds to and lives by this financial philosophy.
Now as far as the worldwide financial crisis, Rogers asserts that it's far from over yet, and by the time it's through, it'll be the worst economic crisis since World War II. The reasons why are the extraordinary excesses that created the crisis in the first place.
He adds that the government is making the usual mistake of interfering, and like the Great Depression in the United States, it'll make things worse, and elongate the pain.
Those who understand or have studied the Great Depression, know that there wouldn't have been one if the government hadn't interfered, as it prolonged it for many years, instead of the short time it would have worked itself out.
This happens because governments can't resist the temptation to make themselves look like saviors to the people, making it look like they're taking steps to alleviate their pain. The truth is the government causes much more pain, and this will happen again with the most recent, misguided bailout offered.
What underlies the mistake is the assumption the government should keep people from experiencing any pain. That's as stupid as those people who spoil and, in reality, abuse their children by keeping them from all difficulties in life.
As for Rogers, he continues to reiterate his commitment to investing primarily in agriculture, as he sees a growing demand that will continue to be a challenge to meet.
Concerning individual investors, Rogers adds that they should invest in sectors or companies they have a solid knowledge of. Nobody will know about them better than you if you do your homework.
The most successful commodities investors will continue to be those that do it with the long term in mind.
Jim Rogers has been known for saying he's the worst trader there is, and a terrible market timer.
The reason behind why he says it? We shouldn't think of ourselves or act like traders or market timers. History has proven that buying at low prices and holding on for the long haul far outperforms trying to time or trade the markets.
Warren Buffett of course also holds to and lives by this financial philosophy.
Now as far as the worldwide financial crisis, Rogers asserts that it's far from over yet, and by the time it's through, it'll be the worst economic crisis since World War II. The reasons why are the extraordinary excesses that created the crisis in the first place.
He adds that the government is making the usual mistake of interfering, and like the Great Depression in the United States, it'll make things worse, and elongate the pain.
Those who understand or have studied the Great Depression, know that there wouldn't have been one if the government hadn't interfered, as it prolonged it for many years, instead of the short time it would have worked itself out.
This happens because governments can't resist the temptation to make themselves look like saviors to the people, making it look like they're taking steps to alleviate their pain. The truth is the government causes much more pain, and this will happen again with the most recent, misguided bailout offered.
What underlies the mistake is the assumption the government should keep people from experiencing any pain. That's as stupid as those people who spoil and, in reality, abuse their children by keeping them from all difficulties in life.
As for Rogers, he continues to reiterate his commitment to investing primarily in agriculture, as he sees a growing demand that will continue to be a challenge to meet.
Concerning individual investors, Rogers adds that they should invest in sectors or companies they have a solid knowledge of. Nobody will know about them better than you if you do your homework.
The most successful commodities investors will continue to be those that do it with the long term in mind.
Monday, October 27, 2008
Commodites: Jim Rogers Agriculture Best Sector
Jim Rogers gives a great lesson in economics, current crisis, and why agriculture will be the place to invest in the years ahead.
Rogers believe the most financially successful people going ahead will be those that gravitate toward the agriculture sector, and in many cases those who choose to farm.
Rogers believe the most financially successful people going ahead will be those that gravitate toward the agriculture sector, and in many cases those who choose to farm.
Wednesday, October 22, 2008
Commodities: Jim Rogers - In the Footsteps of Japan
Jim Rogers - America Following in Footsteps of Japanese Bailout Mistake
On CNBC's Squak Box Wednesday, Jim Rogers reiterated his call for Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson to resign for artificially undergirding poor performing "zombie banks" that should have been allowed to fail.
Citing the debacle of the Japanese government 18 years ago when they made the same mistake, Rogers said their stock market is still 75 to 80 percent lower than it was then.
The Japanese government decided at that time they weren't going to let poorly run banks fail, and they've reaped the consequences of those actions ever since. That could very well be the fate of the U.S. in the years to come.
For now, along with the Swiss franc and Japanese yen, Jim Rogers is continuing to invest in agriculture, and also other strong performers like Asian water treatment companies.
As Rogers points out, we shouldn't go in the failed footsteps that have kept Japan in a state of no growth for decades.
Other Jim Rogers Articles:
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
On CNBC's Squak Box Wednesday, Jim Rogers reiterated his call for Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson to resign for artificially undergirding poor performing "zombie banks" that should have been allowed to fail.
Citing the debacle of the Japanese government 18 years ago when they made the same mistake, Rogers said their stock market is still 75 to 80 percent lower than it was then.
The Japanese government decided at that time they weren't going to let poorly run banks fail, and they've reaped the consequences of those actions ever since. That could very well be the fate of the U.S. in the years to come.
For now, along with the Swiss franc and Japanese yen, Jim Rogers is continuing to invest in agriculture, and also other strong performers like Asian water treatment companies.
As Rogers points out, we shouldn't go in the failed footsteps that have kept Japan in a state of no growth for decades.
Other Jim Rogers Articles:
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
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
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