Rogers is both very astute and a straight talker, two "commodities" of which I'm sure that he would purchase if he could since both are clearly in short supply in the 21st century.
The central topic on the mind of Rogers' interviewer was Federal Reserve Chairman Ben Bernanke's farcical testimony before the U.S. Congress. That lovefest had all the interrogative value of spending the day watching Sesame Street. Rogers was also totally unimpressed:
...Mr. Bernanke is going to print more money...I wouldn't pay much attention to the man...He only knows one thing, and that's what he's going to do...The interview then proceeded to Rogers' specialty: the world of commodities. He remains totally committed to commodities over the long term, rightfully pointing out that as the global economy continues to be drowned in mountains of the bankers' paper currencies, these hard assets must soar in price as all that paper collapses in value. When asked to compare the different commodity sectors, Rogers was also unequivocal. He was most bullish with respect to "soft" commodities and industrial commodities, while less bullish on the monetary commodities gold and silver (at the present time). It's here that I'm going to dare to differ with Rogers to a degree. I wouldn't presume to contradict his long-term prognosis on the future of commodities in a commodity-starved world. In fact, I completely agree with him. However, it is over the short/medium term where I believe I detect a small inconsistency in his analysis of these markets. The inconsistency lies in the fact that Rogers fervently believes (as do I) that we are on the verge of a flight out of paper. He ranked the various forms of these fraud-currencies, and said he expected the holders of this paper to soon begin an exodus out of the most worthless of them -- specifically the U.S. dollar. He also observes that once this exodus starts, there will not be enough stable currency remaining in the world for all of the U.S. dollar refugees (and other paper holders) to find a home. This leads to the obvious question: Where will all those other trillions of dollars go?
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV