Predictions 2011: Jim Rogers, Marc Faber and Richard Russell
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 whats 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.
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.
going to, I think, see some of the highest prices weve ever
seen in many commodities in 2011, said the 68-year-old Rogers
in an interview with Indias Business Channel, ET Now,
very optimistic of all real assets commodities. Government
continues to print money. We have shortages developing of everything.
And thats 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. Feds
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.
[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.
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