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Thursday, August 18, 2005

Update: Interview: Jim Rogers, co-founder of Quantum Fund

Two months ago I posted a link to an interview with Jim Roger's. Now, there's another interview taken place with him (I saw the links on Random Roger's blog) by Investment U.
Investment U: Should there be a hard landing in China, do you anticipate a major consolidation in commodities?

Jim Rogers: Yes, I do. Something’s going to cause consolidations in commodities. We always have consolidations in every bull market in history.

Again, I wish I were smart enough to tell you exactly what’s going to cause them, and the timing, but I’m not. It’s pretty obvious to me that if we suddenly see headlines in the Wall Street Journal of some kind of turmoil in China, that commodities would be having a correction, or would go into a correction. But that would be a chance to BUY commodities.

You know, in the ‘80s and ‘90s, we had some huge corrections in stocks.

Likewise, in ‘94 or any of the other corrections along the way in the bull market in stocks in the 1980s and ‘90s, you made a lot of money. So if you see those headlines, I urge you to buy all the commodities you can. Probably buy all the China you can, too; but certainly, buy all the commodities you can, too.

Investment U: Commodities seem so simple on that level - supply and demand... How does investing in commodities compare with stock investing in terms of the average investor?

Jim Rogers: It couldn't get any simpler. And if you start looking into commodities, you'll see that commodities are a lot simpler and easier to analyze than stocks.

For instance, natural gas is pretty dumb stuff. If there's too much gas, it's going to go down. If there's too little, it's going to go up.

Natural gas doesn't know who Alan Greenspan is, or care; it just cares about supply-and-demand. And once you've made that analysis, it's a lot easier to buy and sell natural gas than to start analyzing 300 natural gas companies around the world, where you have to worry about management and balance sheets and stock markets and unions and environmentalists and dozens of other things.

Investment U: And you believe commodities can be less risky than stocks, too?

Jim Rogers: Well, Enron was a natural gas company. Enron went to zero. Natural gas can never go to zero. It can go down, obviously, but it can never go to zero.
Read further:
Investment U: Jim Rogers on China's Currency Revaluation (Part 1)
Investment U: Jim Rogers: Hot on Commodities (Part 2)

See also:
Interview: Jim Rogers, co-founder of Quantum Fund

2 Comments:

Anonymous Anonymous said...

Actually Jim is wrong. Like power, natural gas can go to zero, and below, if there's no storage or takeaway. Observe last years glut in Norways Langeled pipeline.

5/04/2007 08:30:00 AM  
Anonymous Penny Stocks Under 4 Dollars said...

I think natural gas looks like a bargain here. The price of natural gas is down by 75% over the last 4 years. Theirs an exchange traded note trading under the symbol {GAZ} the note tracks the price of natural gas using futures contracts.

12/07/2011 12:54:00 PM  

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