Up the Creek Without a Paddle

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by Justin Rowlatt Wall Street Pit

     

Sometimes Jim Rogers gets repetative since he usually pounds the same theories – which is not bad from the viewpoint he has a long term outlook, but in this interview with CNBC yesterday there are some interesting items regarding his current positions (currently long dollar even though he does not believe it to be a safe haven), and some trade/currency tensions developing. I must have missed the news about Brazilian import tariff on Chinese goods.

For those newer to trading I think his view on the dollar is important to understand from a lesson standpoint. Even if you the dollar is ‘cooked’ long term, time frame is important. For the near term, the U.S. dollar still is considered a safe haven (best house on a street full of crack homes) and in panic people flee to U.S. Treasuries and the dollar. So while Jim believes U.S. leadership (I use that word loosely) is constantly doing damage to its currency, he understands the way the other people in the market will react and will take advantage of it. (Rogers is a huge long term bear on the currency)

  • The U.S. dollar is going higher “against major currencies,” well-known investor Jim Rogers told CNBC Thursday. The dollar “is going up against everything right now” for a number of reasons, said Rogers. One may be that everybody is panicking “and for some reason they’re rushing into the U.S. dollar.” “The U.S. dollar is not a safe haven, if you ask me, but I do own it,” he added.
  • Also, Rogers noted he would own the U.S. dollar, or the Swiss Franc, or agriculture. “Agriculture prices [are] getting banged right now. I am kind of planning on buying Swiss francs, more dollars and agriculture.”
  • In addition, he weighed in on China’s economy, saying, “They’re doing their best to cool things off … I expect them to continue to do it, and that is causing more slowdown around the world.”

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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.

© 2011 Wall Street Pit

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