Investment guru Jim Rogers in a long comprehensive interview.
Would you be cautious on the Indian markets at the current levels or does everything seem to be hunky-dory?
I am always cautious whenever I am doing anything. The US and the Japanese central banks are intended to print a lot more money around this time. Money supply in the US has grown nearly 8% a year in last months and the Japanese two weeks ago made it clear that they were going to print more money. So we have this money flowing into the world and obviously it is going into the market. Your government, your central bank are going to be more cautious and I hope they are, but in the meantime, the money is going to go somewhere and it is going into stock markets around the world.
How much the market can go up? What kind of an upside could this money really lead to?
I am cautious because as the markets go higher, either they are going to have to continue printing money or come to the currency market from the bond market eventually. My way of playing is to be long commodities because either way whether the world gets better or does not get better, commodities are going to do well. I worry about stocks because I only see the stock markets are pretty high around the world, including India.
Since you mentioned that you would be bullish on commodities, what is it that excites you right now if indeed equities as an asset class does not, especially in India? What is it in the commodity space that you like at this point of time?
Fortunately or unfortunately, depending on how you look at and many of them are going up a lot, cotton is making new highs, sugar has been growing up, and gold you know what has been going on in the markets. I would look at things that have not moved up this much. Buy silver than gold, for instance, if you want to buy precious metal. I would like to buy coffee than some of the things that have moved up so much, but there is still a huge potential. If governments are going to continue to print money, we are going to have higher prices for commodities though you may not have higher prices for stocks somewhere down the road, but as long as you require money, it is going in the commodities, among other prices.
Among commodities, you still believe that despite the run up that we have seen in gold, there is more headroom out there?
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