Investment gurus Jim Rogers and Marc Faber agree to various degrees on many issues but the one thing uniting them this week is the future direction of the US dollar. They see a correction looming in the US currency.
Both Faber and Rogers have been warning about the effects of monetary and fiscal policies on the US economy, since the current rally has been mostly based on printed money, a kind of ‘reverse Robin Hood policy’ of governments, to steal from the peasants to give to the rich.
As with Faber, Rogers is mostly to be seen being interviewed on CNBC and Bloomberg Asia or Europe as they both live in Asia now and since their views are to put it mildly, somewhat negative on the prospects of a sustainable US recovery.
Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said in a video interview Thursday at Barron’s Art of Successful Investing conference that the US dollar is probably at a low point and could have “some kind of rebound”, but it remains in a “structural long term bear market” in terms of purchasing power.
Sadly, other currencies are not any better either, Faber said.
Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said a rally in the dollar may last for “a while” as equity and commodities markets decline.
Speaking in an interview with Bloomberg television in Singapore, Rogers said: “Everybody is pessimistic on the dollar. Whenever you have everybody on the same side of the boat, you know what you have to do. We may have a rally in the dollar, a decline in commodity prices or stock prices for a while.”
Rogers reiterated a long-held belief that printing money to help revive the economy would weaken the greenback and Treasuries. So any rally in the dollar won’t be sustainable, he says.
Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.