Equity markets may dip below recent lows as more troubles lie ahead in the financial market, investor Jim Rogers says.
‘We may have seen a bottom but I expect more bottoms to come,’ Mr. Rogers, chairman of Singapore-based Rogers Holdings, said in an interview with Bloomberg TV yesterday.
The MSCI Asia Pacific Index jumped 12 per cent last month as governments around the world stepped up efforts to stimulate their economies. The gauge has pared losses this year to 1.2 per cent after last year’s 43 per cent slump when the global economy sank into recession. The rally was ‘very powerful’ due to pent-up demand, Mr. Rogers said.
Still, he said he’s not buying into equities because commodities are a better bet. The Reuters/Jefferies CRB index of 19 commodities advanced 10 per cent last month on expectations that government stimulus plans will revive demand. Following recent gains, Mr. Rogers advised investors to short agricultural commodities, although he believes the long-term outlook for agriculture is bright.
He said he prefers oil over gold because the International Monetary Fund (IMF) may sell reserves of the precious metal following a recent rally.
‘The IMF is one of the largest holders of gold, so you’ve got this huge supply overhang,’ Mr. Rogers said. ‘Whether they sell it or not, the world is expecting them to sell it.’
US gold futures have advanced for eight consecutive years - the longest winning streak in at least three decades. Crude oil futures have climbed 16 per cent this year, rebounding from last year’s 54 per cent slump.
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Expect more bottoms: Jim Rogers
Bloomberg
14 April 2009
Equity markets may dip below recent lows as more troubles lie ahead in the financial market, investor Jim Rogers says.
‘We may have seen a bottom but I expect more bottoms to come,’ Mr. Rogers, chairman of Singapore-based Rogers Holdings, said in an interview with Bloomberg TV yesterday.
The MSCI Asia Pacific Index jumped 12 per cent last month as governments around the world stepped up efforts to stimulate their economies. The gauge has pared losses this year to 1.2 per cent after last year’s 43 per cent slump when the global economy sank into recession. The rally was ‘very powerful’ due to pent-up demand, Mr. Rogers said.
Still, he said he’s not buying into equities because commodities are a better bet. The Reuters/Jefferies CRB index of 19 commodities advanced 10 per cent last month on expectations that government stimulus plans will revive demand. Following recent gains, Mr. Rogers advised investors to short agricultural commodities, although he believes the long-term outlook for agriculture is bright.
He said he prefers oil over gold because the International Monetary Fund (IMF) may sell reserves of the precious metal following a recent rally.
‘The IMF is one of the largest holders of gold, so you’ve got this huge supply overhang,’ Mr. Rogers said. ‘Whether they sell it or not, the world is expecting them to sell it.’
US gold futures have advanced for eight consecutive years - the longest winning streak in at least three decades. Crude oil futures have climbed 16 per cent this year, rebounding from last year’s 54 per cent slump.
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