Jim Rogers on Banks & Commodities:
Click for video
Excerpt:
"Jim Rogers, chairman of Rogers Holdings, said the increase in the price of crude oil has "years to go” as known sources of petroleum are dwindling. "I know that unless someone discovers a lot of oil, it can go to $150, $200” a barrel, Rogers said in a Bloomberg Television interview. "The facts are the world is running out of known oil reserves.”
Rogers said he bought airline stocks around the world today, saying bankruptcies show the sector may be nearing a bottom. "Bankruptcies are signs of bottoms, not signs of tops,” he said.
He also said he was shorting Exchange Traded Funds for investment banks, and specifically Citigroup Inc. and the Federal National Mortgage Association, or Fannie Mae. "I am short all the investment banks,” Rogers said on the phone from his home in Singapore. "I know they’re all in trouble, most of them have phony accounting.”
Source:
Rogers Says the Crude Bull Market Has `Years to Go’
Todd Zeranski and Betty Liu
Bloomberg, June 5 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXaqxlra5b3M
Jim Rogers is no Henry Groppe or Pickens,
but he seems to get the macro calls right.
Anyone investing in oil companies would
be blatantly aware that cheap oil is history.
On one hand, I’m getting really sick of these really rich ass hats who use public forums to talk their books and pump prices. Watch oil go to $140 now, or higher. Oil prices at these levels should reflect a real shortage and not a speculative money dump. These rich fuckers are just raping the rest of us. There ought to be a law against it.
On the other hand, anyone who is buying airlines now must be a new kind of stupid. Banks seem less risky.
On the subject of macro…
How can you be long on oil and airlines at the same time?
Well, oil IS up $10 in last 24 hours or so…good job of price stability
Jim Rogers and George Soros, former partners, on opposite sides of the commodity debate. Would be interesting to see the two of them chat now.
http://www.marketwatch.com/news/story/soros-cme-testify-energy-speculation/story.aspx?guid=%7BAD647451-A737-4AD8-98BC-45950991208B%7D&dist=msr_1
Rich_Lather :
I guess it’s his form of hedging!
Cinefoz,
Stop blaming the messenger. You’re blaming the messenger and the symptoms of poor government policy instead of poor government policy — and the voters who voted for it.
Blame half the voters for hating the notion of conservation, of balanced budgets, of alternative energy, etc. etc. They were too busy obsessing over gay marriage and exaggerated fears of bio-weapons. $150 oil is the dumb voters’ faults.
at least Rodgers takes a position in public. Not like the many “experts” who are paraded across the TV with the mantra of “there’s 50-50 chance it will do…….”
So in essence we get people saying, under the guise of being an “expert” that it will go with you or against you. Like I wasn’t aware of that in the first place.
I respect JR for taking a public position against the banks…when others just can’t seem to take one side or the other.
Ciao
MS
“Rogers said he bought airline stocks around the world today…”
Rogers prefers airlines in China, Taiwan, and Europe, NOT in the United States:
“On the other hand, he has bought some airline stocks in China, Taiwan, and Europe, citing very little new capacity coming online, sold-out production at Boeing and Airbus, and rising fares. Mr. Rogers said he wouldn’t touch the stock of an American airline because ‘they’re so hopelessly managed.'”
http://www.investorazzi.com/2008/04/28/jim-rogers-buys-chinese-shares-likes-currency/
http://www.investorazzi.com/2008/03/24/jim-rogers-fly-away-from-friendly-skies/
wunsacon: Don’t blame a lack of “conservation”. It’s a big lie. FOr instance, all that water we were ordered to “conserve” (no car washes, lawn watering, etc.) in the 70s was conserved for what? To create a comfort zone? Nope. It was merely to increase capacity. And increased capacity is excess capacity, and a green light for additional development until the resource you were “conserving” is strained again. If you want to save the world, waste as much food, water, and energy as possible. That is the *only* way the common man has to thwart over-development… futile though it may be.
Based on oil today, I think it’s Trichet 10, Bernanke 0, although Trichet may not want to win that big.
dukeb, I’ve thought before about your equating of “conservation” to “preserved capacity”. I’m afraid I agree with you. What we really need is “conservation-by-reduced-population-growth”.
Still, soccer moms and dads should not “shoot the messenger” of “higher prices”. They’ve been making personal and electoral decisions to exacerbate rather than mitigate problems.
Cinefoz at 7:14:40 AM
“Watch oil go to $140 now, or higher. Oil prices at these levels should reflect a real shortage and not a speculative money dump. These rich fuckers are just raping the rest of us. There ought to be a law against it.”
I own shares of USO and DJP. I hope there’s not GOING to be a law against it.
Lets see am I going to bet with Jim Rogers or Doug Kass on this one…Kass’ trading calls on real money have been god awful over the past year. The guy makes good macro calls and uses good logic, however, he is always off in his timing. Kass has shown he is the ultimate contrarian. Of note Rogers and Schiff have absolutely nailed the current situation. We need more of those guys and less Cramer, Luskin, Bowyer and other the CNBC windbags.