Jim Rogers: Petrol is Not Going to Stay Dirt Cheap for Five Years, Opportunities Exist

"They have to look at the same factors – supply and demand. If we look at energy, for instance, known reserves of oil have been declining for years. And then along came fracking. Fracking was a miracle, but fracking turned into a bubble. If you could spell fracking, people would give you money to invest. Now, fracking is not going to disappear. It’s going to disappear for a lot of people because some are going bankrupt. But fracking is still going to be around, but it’s not a bubble anymore. And they have to worry about supply and demand like everybody else.

Sugar is down something like 75% or 80% percent from its all-time high. I don’t know many things that are down 75% or 80% percent from their all-time high. So all commodities dealers, producers and consumers are going to have to worry now about supply and demand. Most consumers are going to be better off if you are asking about the next year or two, except [those exposed to] gold. So most people are getting a benefit from this collapse, at least in their cost of living, if they have a job.

But now we all have to start worrying, including producers and consumers, about supply and demand because the price of most commodities are not going to stay down here where they are. I don’t think petrol is going to stay dirt cheap for the next five years, because production is starting to decline. So the answer is simple – supply and demand."

- Source, SPGlobal

Jim Rogers: Bright Spots for Commodities, Risk Still Remain

In commodity and energy markets, who do you think will be at the winning end and the losing end? And in this scenario, is there such a thing as safe haven?

At the moment, nearly all commodities are touching lows. Anybody who has anything to do with commodities – unless they’ve sold them short or unless they use commodities, are losers, except gold. But everybody who uses oil is a winner right now – Germany, China, Japan. People who consume oil think this is heaven. They think they’ve won the jackpot. Gold is up over the past seven or eight years. This is higher now than it was since 2011. So every commodity user is benefiting right now.

How do you see commodity markets panning out for the rest of 2020 and in early 2021?

I would suspect that most commodities now are close to the bottom. We’re in a period where the cure for low prices is low prices. In other words, when prices get very low, people use more of it and the producer produces less. China has opened up. Other countries are opening up again. So demand will go up again and prices will go up again. As I look around the world and all asset classes, the cheapest asset class I can see right now are commodities. Certainly not bonds – bonds are in a bubble. Most currencies are certainly not overpriced but certainly not as cheap as they might be. Stocks are certainly not dirt cheap anywhere. Everything I see that’s historically very cheap – that’s commodities.

S&P Global Ratings has said that the coronavirus pandemic is dragging the global economy into a recession. How long do you think it might take us to get out of it?

The last time I spoke with Platts, I said that the next time we have an economic problem in the world, it would be the worst in my lifetime. And it is – here it is. It’s not over yet. It’s going to get worse before it’s over. 

There’s going to be some rallies. But there’s too much debt. America was the largest debtor nation in the history of the world. And in the last month, Americans added several trillion – trillion with a T – dollars of debt and printed huge amounts of money. So the damage which is being done is going to take a while for people to recover from. There’s an election in November. 

They all want to be elected in November. All they care about is getting elected. But in the future, America’s got a problem of gigantic debt, not just at the national level, but also at the level of states, cities, as well and individuals. 

This is going to take a long time. In 1920, Great Britain was the richest, most powerful country in the world. But they started spending money and borrowing – doing the things that America is doing now. 

They lost. I live in Singapore. Many companies in Singapore are going bankrupt. This is going to leave a lot of scars and a lot of damage.

- Source, SPGlobal

Jim Rogers: Crude Crash Like Never Before

Last night's WTI crash was an aberration, Oil Prices cannot remain at zero. It was due to contract expiry, says Jim Rogers.

- Source, ET Now

Jim Rogers Helps Decode the Inflation vs Deflation Debate

Jim Rogers is one of the greatest investors/speculators in history and using his simple approach we can solve complex problems. 

Jim Rogers is well known for thinking outside the box to find huge returns in markets all over the world. 

But the same strategies that have made Jim Rogers famous can also improve your skills if you know how to apply them.

- Source, George Gammon

Jim Rogers Reveals Secrets That Could Make You Rich in This Crisis

Through decades of investing experience around the world and in every asset class Jim Rogers has built a reputation as being one of the best investors of our time. 

Jim Rogers has beat the markets by looking for asymmetric bets, in areas and assets classes that are beaten down and extremely cheap. He tries to find a catalyst for change and looks to fade hysteria in markets. 

By executing this strategy successfully for decades Jim Rogers has become one of the greats. And now Jim Rogers shares his wealth of knowledge with all of us.

- Source, George Gammon

Jim Rogers: Stock Up on Gold and Silver Before the Virus Crisis is Over

Things that are crushed right now like tourism, transportation and hotels will recover and do well, says the Chairman of Rogers Holdings.

- Source, ET

Jim Rogers Expects to See "L-shaped" Recovery

Legendary investor Jim Rogers, the founder of the Quantum Fund, expected that the world will not be able to recover from the lingering coronavirus crisis in the near future.

The financial commentator based in Singapore said that the economic recovery would not be a V-shaped curve, which will see a steep upturn, or U-shaped one, which is marked by a slow upswing.

Instead, he projected the world would see an L-shaped curve because the “debt-based bubble has popped” to cause “the worst economy in his lifetime.” It is the worst-case scenario that is feared to bring about an extended recession.

“The economy is different from the market. The market is having a nice recovery now. The government is everywhere, spending a huge amount of money, printing a huge amount of money. We are having a market recovery by money printed and spent,” he said in a telephone interview.

“That is not the economy. The economy has problems and will continue to have problems for some time _ L-shape if I have to say something.”

But Rogers is looking for investment opportunities even during the economic downturn in such segments as “transportation, tourism, travel, hotel, and restaurants.”

“They have been beaten, they have been smashed. So that is where I found opportunities all over the world,” he said.

In South Korea, Rogers fixes his eyes on companies, which will benefit after the opening of the 38th Parallel, which has divided the two Koreas over the past 70 years.

“I expect that the 38th Parallel will open before too much longer, and when that does, some companies will do very well,” he said.

“Once the 38th Parallel opens, the (Korea) Peninsula will be very, very exciting. In fact, China is the most exciting country for the next century, but for the next decade or two, it would be Korea.”

The interview took place on April 20 before the April 21 news articles that North Korean leader Kim Jong-un might be in a “grave danger” after going through a previous surgery.

- Source, Korea News Plus