Wednesday, September 3, 2008

Jim Rogers says Commodities rise not due to Speculative Rallies

In a recent interview, Jim Rogers said that the commodities bull market was not necessarily due to speculative rallies. Instead, he suggested that there was a true supply and demand problem that was driving up the prices of various commodities.

At an investment conference last month, Jim Rogers also said that he expected oil prices to rise to $175 a barrel. Goldman Sachs had also said that they expect oil prices of $150 by end of this year.

So is the current drop in commodity prices just a correction or the end of the bull market?

Jim Rogers who says that he is a terrible market timer said that it was not unusual for commodity prices to pull back by 40 to 50% in a bull market. Rogers also said that investors should buy low when the opportunity comes and that he would rather own wheat and cotton than IBM and Google.

He said: " I personally prefer to buy when markets are declining rather than rising."

And of course, another thing that is on the mind of Jim Rogers is the ever increasing American National Debt

National Debt Clock

Jim Rogers also travelled around the world in a custom made BMW. That is my dream! To have a beautiful car, and to travel around the world!

Maybe I should follow Roger's advice. Invest in Commodities and China!
The author is currently invested in various commodity related funds like First State Global Resources which he bought from Fundsupermart.

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