Famed hedge fund investor and round-the-world motorbiker Jim Rogers is not very keen about financial assets these days, which is not entirely surprising given that he runs a commodities fund.
Maybe the bearish outlook has to do with the view of the world from Singapore. Marc Faber, who makes most of his TV appearances from Singapore, says he holds almost entirely cash and stocks, and considered himself to be making a bullish move by going from 7-8% equities to 10%.
The rout in global markets may continue while bonds will be a “terrible” investment as economic problems may persist until 2010, investor Jim Rogers said.
“Stocks in the West are still expensive on any historic valuation method,” while “bonds are going to be a terrible place to be for the next 10, 20 years,” Rogers, chairman of Singapore-based Rogers Holdings, said at a conference in Seoul today. Equities in the West will be “in a trading range for years to come,” he said…
“I have started going back into the markets; that does not means it’s the bottom,” Rogers said. His purchases since mid- October include commodities and equities in China and Taiwan, as well as “a Korea stock,” he said, without giving deails.
“We may be hitting `a’ bottom,” Rogers said. “I don’t know if it’s `the’ bottom.”
Rogers, 66, correctly predicted the start of the commodities rally in 1999. His books include `Hot Commodities: How Anyone Can Investment Profitably in the World’s Best Market’ and `A Bull in China: Investing Profitably in the World’s Greatest Market.’
Rogers continues to favor commodities as an investment as fundamentals are “unimpaired” amid a global liquidation of assets, he said. “You will see that stocks have gone down more so far than commodities. That will continue as far as I’m concerned.”
An MSCI index of developed- and emerging-market stocks has lost 44 percent so far this year, compared with a 30 percent decline in the Reuters/Jefferies CRB Index of 19 commodities.