Jim Rogers, chairman of Rogers Holdings, talks about global commodity markets and investment strategy. Rogers also discusses the outlook for the U.S. dollar. He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.”
Rishaad Salamat : Jim Rogers, author of Street Smarts, Adventures On The Road , In The Market, and Chairman of Rogers Holdings as well. Jim, thanks a lot for joining us : Well, big pullback, still not a buying opportunity… when does it become one?
Jim Rogers : Well, that’s a good question, you should watch Bloomberg and find out! I don’t know, I’m not very good at market timing… if it goes down to… I don’t know, I don’t have a number… I’m really more depending on the mood of the market. It looked sort of like a selling climax earlier, in the last few days,but once if or when we have a real selling climax or, maybe if it tests a bottom, then I’ll start buying again.
Rishaad Salamat : Yeah, Jim, I mean, what’s behind what you’ve been seeing on the gold market right now… you know, you’re talking about the mood of the market and, you know, why did we get a sudden turnaround in it?
Jim Rogers : Well, it’s not so sudden, Rish. You know, gold made its peak nearly 18 months ago, in 2011. Gold is very strange… it’s gone up for 12 years in a row without a down year, which is extremely unusual, then, of course, gold has only had one 30% correction in twelve years, that’s… unbelievable! Most things correct 30% or 40% every year or two. So gold was set up for having a proper correction (and) this may be the proper correction, and if so, then it’ll make a bottom and then we can all buy gold again, because gold is going much higher over the decade.
Rishaad Salamat : Yeah, I mean, Jim, we talked before about this and it’s, you know, you think that people should become farmers if they want to become rich, in the future… do you still hold that view?
Jim Rogers : Well, absolutely! I’m much more bullish on agriculture than I am on nearly everything else in the economic world…farming is… it just gets worse for farming… you know, the number of farmers is decreasing every year and no money is going… little money is going into farming, very few people are going into farming… there’s a great gap developing.
Rishaad Salamat : So, how do you actually, well, play, for want of a better word here… I mean, do you buy the commodities, or do you actually physically go and buy some of these farmers themselves?
Jim Rogers : Well, the best way is to become a farmer, buy farm land, then you get a double or triple whammy, your income goes up every year, the value of your products goes up every year, your land goes up every year …now that’s the best way… not many people are going to become farmers, obviously, but you can buy companies that sell to farmers, you can buy restaurants in the farm areas, you can get the Lamborghini dealership in the agricultural areas… there are many ways, you can buy the seeds companies, the tractor companies, the fertilizer companies… you can buy countries that are agricultural countries. You know, Australia is much more agricultural than Luxembourg, for instance.
Rishaad Salamat : Yeah, absolutely, that’s very true. Now, just been reading some of you recent comments as well, and you find water more and more attractive – of course people have often said that the next wars may well be over water –and, you know,the thing is, how do you find ways to invest in it?
Jim Rogers : Well, again, Rish, you gotta watch Bloomberg or go in your Bloomberg machine! There are not many ways that I know of… I own a couple of water stocks,but there’s not many ways that I know… you need to find somebody who purifies it, or transports it, something to do with supplying water to people. We’re gonna have serious… we have serious water problems in northern China… northern India is even worse…the drought we had in the Southwest and parts of the US… we have serious water problems developing… You know, there’re gonna be wars west of the Red Sea over water… east of the Red Sea the wars will be over oil, west of the Red Sea, they’ll be over water.
Rishaad Salamat : Yeah… let’s get to what’s going on at the moment in the markets. Of course, we have many finance ministers meetings taking place, G-20 convening here as well, and one of the big themes is gonna be currency devaluations, currency wars. Where do you stand on all this, right now? I mean, we’ve often talked about the dollar with you, and many people have turned very positive on it… well, how are you?
Jim Rogers : Well, Rish, I… you should ignore these. I mean, I know you have to look at these meetings, these G-20 meetings, these G-7, G-whatever- that-comes-up…but I mean, it’s really a waste of time. Nothing ever comes out of them. They all get together, they have a nice meal, at our expense, and they put out meaningless statements, and nothing ever happens. I would ignore them, if I… I ignore them… you, you have to report on them.Nothing is gonna come out of it, the country is gonna do what they want… Japan is gonna print money, America is gonna print money, Britain is gonna print money… Whatever they say, they’re still gonna print money.
Rishaad Salamat : So, what is… you know, I remember talking to you a couple of years ago, and you were saying that you were such a dollar bear that you were liquidating your dollar assets at that point… I know you went back in and bought dollar assets. Now, what is your view on the dollar itself? Is it, as some people are suggesting now, at a time for it to have a bull run?
Jim Rogers : Well, I own dollars, Rish, although I’m very worried about it because there’s so many bulls now on the US dollar that it worries me, and I don’t like when everybody’s on the same boat that I’m on. So I own the dollar, partly because I expect more turmoil, and people go to the dollar when there is turmoil atorvastatin lipitor. The dollar is a terribly flawed currency, it’s not a good situation. But I own it because many people will flee to this perceived safety of the US dollar. But I don’t know how long I’ll own it Rish,’cause there are lots of bulls now, lots of bulls.
Rishaad Salamat : Okay, where are you looking next, then, to make money, Jim? You know, are you looking… I mean, I know you’ve already looked into Japan, and you’ve added there… where else?
Jim Rogers : Well, I’m looking at Russia. I’m trying to find ways to invest in Russia. I’ve invested a little bit in Russia. I’ve been trying to find… you know there’s a lot of energy companies in Russia, but I’m trying to find things that are not… I’ve got plenty of energy (stocks) , so I’m trying to find other ways to invest in Russia : the currency, the bonds, the stocks… if you have any suggestion, let me know.
Rishaad Salamat : Jim, we’re gonna leave things here, but thank you so much for joining us. Jim Rogers, author of Street Smarts and, indeed, chairman of Rogers Holdings.