Predictions 2011: Jim Rogers, Marc Faber and Richard Russell Agree
What do Jim Rogers, Marc Faber and Richard Russell have in common? All three men possess a gift for analyzing financial markets independently and cautiously, and do so with decades of experience. Each man sells nothing but what’s on his mind – the best kind of advice to cautious investors.
All three expect 2011 to be a troublesome year, with the growing possibility of unpleasant surprises, turmoil and wealth destruction.
Starting with Rogers, the commodities market prodigy of the famed Quantum Fund: he expects all real assets to enjoy a tailwind of inflation as central banks worldwide bailout banks, businesses and sovereign nations with as much fiat currency as required to forestall default.
“We’re going to, I think, see some of the highest prices we’ve ever seen in many commodities in 2011,” said the 68-year-old Rogers in an interview with India’s Business Channel, ET Now, Jan. 3.
“I’m very optimistic of all real assets – commodities. Government continues to print money. We have shortages developing of everything. And that’s going to continue,” he added.
As a humorous note, during a typical rant and condescending tone he regularly uses to express his disgust for U.S. Fed policy, Rogers’ audio cut out. In another candid moment, Rogers playfully commented, “I said the wrong thing.”
The no less candid Marc Faber, the publisher of the Gloom, Boom and Doom Report, strongly suggests that the result of the U.S. Fed’s policy to deliberately debase the U.S. dollar by setting short-term interest rates artificially low will lower Treasury bond prices over time. He has repeatedly warned of a Treasury market bubble.
“This [long-term U.S. Treasuries] is a suicidal investment,” Faber said to Bloomberg in a telephone interview from St. Moritz, Switzerland. “Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.”
© 2011 Beacon Equity