The event coincided with the relisting of the Market Access Rogers International Commodity Index UCITS ETF (LON: RICI) on the London Stock Exchange.
The ETF returns to London after a hiatus of four years. China Post Global had canceled the ETF’s LSE listing in 2016 due to low trading volume.
“Interest in gold and commodities has increased sharply since the COVID-19 pandemic began,” explained Danny Dolan, Managing Director of China Post Global. “Investors are seeking a safe haven in gold, and an inflation hedge in broad commodity indices after huge quantitative easing measures.”
Jim Rogers designed the Rogers International Commodity Index (RICI) in 1996/97.
Here are his views on the virus, helicopter stimulus and commodities.
On COVID-19
Rogers noted the extremely adverse impact of COVID-19 on global economies, saying it was unparalleled since the days of the Depression.
Encouragingly, he thinks this is likely only to be temporary, and that the world will bounce back.
He also made the important qualification that though production will rebound, it may not recover to pre-virus levels for quite a while.
Quantitative easing and stimulus
However, it appears that Rogers is more worried about the debasement of the global financial system that started after the 2008 crisis through fiscal and monetary stimulus measures by countries around the world.
Rogers is alarmed that what was then admittedly an “experiment” is continuing due to short-sighted political motivations, with no thought for long-term implications.
He claimed that artificially induced, low interest rates had fuelled hugely leveraged bets by sovereigns and corporates. These positions could unwind with dire consequences including insolvencies and people’s loss of confidence in the financial system.
- Source, invezz.com
