Submitted by Taps Coogan on the 20th of May 2020 to The Sounding Line.
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Legendary investor, author, and Chairman of Rogers’ Holdings, Jim Rogers, recently sat down with S&P Global Platts’s Sambit Mohanty to discuss his long-held bullish outlook for commodities. Simply put, he notes that “As I look around the world… I look at all asset classes, all countries… the only things that I see that are historically very cheap are commodities.“
Some excerpts from Jim Rogers:
“We could have asked the same question (will financial markets ever be the same?) after the Spanish flu, the collapse of 1929, …after the huge collapse of 2008 and 2009. And you know what? Yes, they are always the same. Human being always get greedy. They always get scared and panic. They have not repealed the laws of fear and greed… You can go back to an tragedy and any triumph you want to and people said the same thing: Will things be the same later? And they always were… People are always talking about the lessons of history. The main lesson of history is people don’t learn the lessons of history…”
“I would suspect that most commodities now are making bottoms. There’s an expression: the cure for low prices is low prices. In other words, when prices get very low, people use more of it, and the producers produce less… The price of everything is down… Look at petrol, people would like to use more petrol but of course everybody is locked in in some countries. But China has opened up, other countries are opening up, so demand will go up again and prices will go up again. As I look around the world, I look at all asset classes, all countries, and everything, and the cheapest asset class that I see right now are commodities, certainly not bonds, bonds are in a bubble…, most currencies are not overpriced, certainly not as cheap as they might be, stocks are not dirt cheap anywhere. The only things that I see that are historically very cheap are commodities…”
“I think the last time I spoke with you, I told you that (the next crisis) would be the worst in my lifetime and it is. Here it is. It’s not over yet. It’s going to get worse before it’s over. Yes, there are going to be some rallies. Before this, everyone had too much debt. America was the largest debtor nation in the history of the world. In the last month America has added several trillion dollars of debt…”
There is more to the interview, so enjoy it above.
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