JIM ROGERS BLOG: 04/19/11

Tuesday, April 19, 2011

Beware of all politicians everywhere

"Beware of all politicians everywhere. They excelled at recess when they were in school but have excelled at little since."
— Jim Rogers (A Gift to My Children: A Father's Lessons for Life and Investing)

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ) iShares FTSE/Xinhua China 25 Index (ETF) (FXI) China Mobile Ltd. (ADR) (NYSE:CHL), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), China Petroleum & Chemical Corp. (ADR) (NYSE:SNP), China Life Insurance Company Ltd. (ADR) (NYSE:LFC), PetroChina Company Limited (ADR) (NYSE:PTR), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH)

A Gift to My Children

"If everyone saw himself as a citizen of the world rather than of his town, city or country, the world would be a more peaceful, better place where success in all forms is abundant and available to all. (A Gift to My Children)"
— Jim Rogers

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ) iShares FTSE/Xinhua China 25 Index (ETF) (FXI) China Mobile Ltd. (ADR) (NYSE:CHL), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), China Petroleum & Chemical Corp. (ADR) (NYSE:SNP), China Life Insurance Company Ltd. (ADR) (NYSE:LFC), PetroChina Company Limited (ADR) (NYSE:PTR), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH)

Common sense , Not so common

"Common sense? Not so common. Most perceived wisdom is a misconception."
— Jim Rogers (in A Gift to My Children: A Father's Lessons for Life and Investing)

this disaster in Japan going to increase demand for commodities

Yes, this [disaster in Japan (NYSE:EWJ)] is going to increase demand for many commodities (NYSE:RJI). This is the new source of demand for copper and lead and things that nobody expected of new demand coming out of Japan, now there is a lot of new demand coming out of Japan. If the rest of the world goes into an economic slowdown because of this, then governments around the world are going to print even more money, that is the wrong thing to do but that is what they will do and whenever they print money, it is good for real asset, commodities (NYSE:RJI). - in Economic Times

bigger demand for oil

There’s going to be a much bigger demand for oil (NYSE:USO) from power plants because nuclear power plants are being shut around the world. – in CNBC

I’m concerned about Japan

“I’m concerned about Japan (NYSE:EWJ). What do I do now? Obviously the yen cannot continue to be a good long. Japan seems determined to debase the yen, which they may be about to do.” – in MarketWatch

there’s panic selling after serious events

“Normally, when you have serious events like this, there’s panic selling. The best thing to do historically has been to wait a little while and then buy into the panic selling. In 1995 when they had the Kobe earthquake, the Japanese stock market (NYSE:EWJ) went down 25% but ended the year almost flat.” – in CNBC

a tipping point for the dollar

“Somewhere along the line we’re going to have a tipping point for the dollar, then it’s all over. I thought it would happen in a few years; maybe it’s going to happen in a few weeks.” - in Wall St. Cheat Sheet

Index investing outperforms active management

“Index investing outperforms active management year after year.” – in Brainy Quote

social unrest worldwide

“There will be lots of social unrest worldwide with governments and countries falling. Others will have crises before China (NYSE:FXI) – especially in the West Asia – perhaps even India (NYSE:IFN).” – in mydigitalfc

we’re going to have a tipping point for the dollar

Jim Rogers says: “Somewhere along the line we’re going to have a tipping point for the dollar, then it’s all over.” “I thought it would happen in a few years; maybe it’s going to happen in a few weeks.”

Commodities are going to make a fortune

“If the world economy gets better, commodities are going to make a fortune. If the world economy does not get better, commodities are the place to be because they are going to print more money, and that’s how you protect yourself”- in CNBC

Paper money is made of cotton

“Paper money is made of cotton, and I’m long cotton, by the way. One reason I’m long cotton is because Dr. Bernanke is out there running the printing presses as fast as he can.” – in Business Week

Silver is 40 percent below its all time high

Jim Rogers recently said ”silver is going up, but silver is 40 percent below its all time nominal high. Yes, commodities have been going up recently, but they are still extremely depressed on a historic basis.”

I own Gold but I prefer Silver

“Gold will have reached an unbelievable price before it starts falling,” Jim Rogers said, who owns gold but prefers silver due to it remaining cheap relative to gold and cheap on a historical basis.

sell your bonds and buy Gold and Silver

“Jim Rogers speaking to investors in Amsterdam , said that gold is still far from being a bubble and investors should sell bonds and buy precious metals. The chairman of Rogers Holdings, who predicted the start of the global commodities rally in 1999, said that ”gold should have a rest but it’s far from being a bubble yet.”

The Chinese have been saving and investing

“The Chinese have been saving and investing over 35 percent of their income and the United States has been saving and investing two percent of our income. We’ve been borrowing and consuming. They’ve been saving and investing.” – in AllVoices.com

the farmers and the miners will be better off than Wall Street brokers

“The City of London and Wall Street are not going to be great places to be in the next two or three decades. It’s going to be the people who produce real goods in charge – the farmers and the miners.” - in The Telegraph

I own gold and silver coins and futures

What you have to do is you have to find things that will protect your assets, real assets: Silver, rice, natural gas; something that will hold its value in an inflationary time… I do it two ways: I own gold and silver coins in my hand, in my house, in my box; I also own gold and silver futures that’s another way to do it. - Freedom Watch, February 7, 2011

expect more currencies turmoil

“I don’t own very many equities. I don’t know what’s going to happen but I expect more currencies turmoil, more social unrest, more governments collapsing so I invest more in currencies and commodities than stock.” – in CNBC

US government bonds turning into a real bubble

“Firstly, I have started looking at shorting US government bonds. I think they are turning into a real bubble because of this situation in the Middle East. People are flooding into US government bonds, which is a mistake. I have bought a small tractor company in Japan today because they are starting to infuse huge amounts of money in Japan trying to solve their agricultural problems. I am bullish on agriculture, I am bullish on all commodities.” – in CNBC TV-18

The price of food is going up

“Of course it can get worse. It can turn into a civil war which can rage for a long time. I doubt it will, given the state of the world. But now we are having more and more social unrest, certainly we are going to have a lot of social unrest. The price of food is going up. When food prices go up, people get out agitated and they look for someone to blame.” – in CNBC

Commodity bull run

“Commodity bull runs have lasted 15-20 years...We have got another nine to 17 years to go.” - Jim Rogers

Inflation going to get worse

“But with U.S. pouring gasoline over the fire, it’s going to be much more difficult for anybody to stop inflation. America is fanning it as best as it can, and it’s going to get worse.” - in www.myloansconsolidated.com

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ) iShares FTSE/Xinhua China 25 Index (ETF) (FXI) China Mobile Ltd. (ADR) (NYSE:CHL), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), China Petroleum & Chemical Corp. (ADR) (NYSE:SNP), China Life Insurance Company Ltd. (ADR) (NYSE:LFC), PetroChina Company Limited (ADR) (NYSE:PTR), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH)

The Chinese Property Bubble

The China boom continues. The China prosperity continues. I notice it spreading. The property boom continues to spread. I see that more and more. But of course, there are those who think that it’s a property bubble, including me – at least I think there is a property bubble in coastal cities. The government is trying to pop that bubble as you know and I presume that they (will) pop the bubble. The Chinese government has enough authority and control that they can pop something if they really mean it. We’ll see. - in Forbes Blog

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ) iShares FTSE/Xinhua China 25 Index (ETF) (FXI) China Mobile Ltd. (ADR) (NYSE:CHL), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), China Petroleum & Chemical Corp. (ADR) (NYSE:SNP), China Life Insurance Company Ltd. (ADR) (NYSE:LFC), PetroChina Company Limited (ADR) (NYSE:PTR), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH)