More Turmoil to Come, Buy Real Assets: Jim Rogers
Posted: Fri May 18, 2012 7:35 amMore Turmoil To Come, Buy Real Assets: Jim RogersEx-ECB Chief Trichet Unveils Bold Plan To Save EuroForget Greece, China Biggest Risk To Global Economy: FaberJPMorgan Unit Has $100 Billion Of Risky BondsEurope Shares Seen Lower; Spain, Greece Worry MarketsECB 'Only Game In Town' As Global Markets TumbleAsia Ends Down As Euro Zone Troubles DeepenSpanish Banks Downgraded As Borrowing Costs SoarIPO Will Be 'Greatest Muppet Show' Ever'Armageddon' Scenarios Vanish From Currency Market?
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More Turmoil to Come, Buy Real Assets: Jim Rogers
Published: Thursday, 17 May 2012 | 9:43 PM ET Text Size
By: Deepanshu Bagchee
Supervising Digital Editor, CNBC Asia
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Jim Rogers, the chairman of Rogers Holdings, says he expects more turmoil in the global financial markets after several Asian stock markets on Friday fell to four-month lows.
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Jim Rogers says he has hedged his Euro position as the debt crisis in the region has worsened.
"The world's got serious problems facing it, I don't particularly like saying it, but it's true," Rogers told CNBC.com on Friday morning in Singapore. "Unfortunately there will be more debt and currency turmoil to come."
Markets across Asia fell on Friday morning after Moody's cut credit ratings of 16 Spanish banks and the country's government had to pay over 5 percent for four-year bonds in a debt auction. Investors are growing increasingly worried that Greece's debt problems are spreading to Spain, Europe's fourth-largest economy.
Rogers said he had hedged nearly all the euros he owned and was no longer long the currency.
"I hope the euro survives, I think it will survive in some shape and form," Rogers said, adding he didn't own many equities around the world either.
The renowned commodities investor said he was long real assets, such as gold, silver and agricultural commodities.
"I own real assets because if the world economy gets better I'll make money because of shortages and if things get worse they'll print more money," which will drive up the value of hard assets, Rogers said.
He believes the market turmoil will escalate in the fall, and said he was surprised that things had gotten worse this early in the year.
"I thought this would start in the fall - this is an election year in America. They will print money and spend money before the elections; a lot of people are spending money to keep the economy going," he said.
Rogers said the trouble at JPMorgan, which last week reported a surprise $2 billion loss from a failed portfolio hedging strategy, would lead to more liquidation in the markets, as the bank would have to unwind a lot of positions to make up for the losses.
http://www.cnbc.com/id/47470339
SPECIAL REPORTS
ยป More
Surviving Retirement
How three generations are coping with the need to save more and work longer.
HOT ON FACEBOOK
More Turmoil to Come, Buy Real Assets: Jim Rogers
Published: Thursday, 17 May 2012 | 9:43 PM ET Text Size
By: Deepanshu Bagchee
Supervising Digital Editor, CNBC Asia
19
12
Share
Jim Rogers, the chairman of Rogers Holdings, says he expects more turmoil in the global financial markets after several Asian stock markets on Friday fell to four-month lows.
Getty Images
Jim Rogers says he has hedged his Euro position as the debt crisis in the region has worsened.
"The world's got serious problems facing it, I don't particularly like saying it, but it's true," Rogers told CNBC.com on Friday morning in Singapore. "Unfortunately there will be more debt and currency turmoil to come."
Markets across Asia fell on Friday morning after Moody's cut credit ratings of 16 Spanish banks and the country's government had to pay over 5 percent for four-year bonds in a debt auction. Investors are growing increasingly worried that Greece's debt problems are spreading to Spain, Europe's fourth-largest economy.
Rogers said he had hedged nearly all the euros he owned and was no longer long the currency.
"I hope the euro survives, I think it will survive in some shape and form," Rogers said, adding he didn't own many equities around the world either.
The renowned commodities investor said he was long real assets, such as gold, silver and agricultural commodities.
"I own real assets because if the world economy gets better I'll make money because of shortages and if things get worse they'll print more money," which will drive up the value of hard assets, Rogers said.
He believes the market turmoil will escalate in the fall, and said he was surprised that things had gotten worse this early in the year.
"I thought this would start in the fall - this is an election year in America. They will print money and spend money before the elections; a lot of people are spending money to keep the economy going," he said.
Rogers said the trouble at JPMorgan, which last week reported a surprise $2 billion loss from a failed portfolio hedging strategy, would lead to more liquidation in the markets, as the bank would have to unwind a lot of positions to make up for the losses.
http://www.cnbc.com/id/47470339
