Jim Rogers, Rogers Holdings CEO & chairman, explains his bullish outlook on grains and China; how he views a global slowdown as a buying opportunity; and why he would buy gold on a dip.
crzo, all that top of the commodities like oil and copper were down today after disappointing china manufacturing numbers. investors are fearful that the world’s second largest economy is heading for a crash, but our next guest says the slowdown is just the opportunity he has been looking for. let’s welcome legendary investor and author of the book a gift to my children, jim rogers. jim, it’s great to speak to you again. good morning, melissa, how are you or good evening i guess it is there. good morning to you, jim. in terms of the pullback that we’ve seen most recently on these china concerns and they started before the hsbc numbers were out today and started this week with the comments from that bhp executive about slowing iron ore demand. where did you look to first take advantage of this pullback? melissa, china has been trying to slow its economy down for three years. they have been trying to pop the real estate bubble for three years, so it’s finally bearing fruit, and i’m delighted to see it. they need to do that. it will be good for china, good for the world and it will present opportunities for all of us. i hope that the chinese market collapses so i can buy chinese shares. so at this poyou’re not using minor pullback because you’re anticipating a bigger one which will be a bigger buying opportunity in your view? i certainly expect the world to have more of a slowdown in the next year or two and that will be an opportunity for all of us. jim, if you look forward and you see a potential sovereign debt crisis in japan so think about japanese yen down 10%, u.s. dollar up 10% from here. how do you think about risk managing your long commodities exposure in that environment? well, i — i usually try to have some shorts of something. i’m long commodities. if the world economy gets better, commodities are going to do better because of shortages. if the world economy doesn’t get better they are going to print money. it’s the wrong thing to do, but when they print money, you should own real assets, so what i will do is i will have shorts, probably in the stock market, to protect myself. i’m nearly always hedged one way or the other. for instance, right now i’m short emerging market stocks as a potential hedge. jim, thanks for waging up so early. if the collapse in the chinese shares come to fruition, my belief is that this whole run up shares is predicated on continued china growth. what does that mean for the u.s. stock market? well, i’m very pessimistic about the u.s. stock market. social by the end of this year and into 2013 and 2014, it doesn’t even mean it won’t continue to rally this year. there’s an election this year. obama wants to get re-elected. he’s doing everything he can to get re-elected. spending money, printing money, putting out good news, artificial or not, but later this year it’s all going to catch up with us. i happen to agree with you 100%. i’m really worried about 2013 and 2014. all right. jim, stay right there. we’re going to continue our conversation with legendary investor jim rogers on the other side of the break, including a shocking emerng market play. stay tuned. ?? ?? ?? here we are, me and you ?? ?? on the road ?? ?? and we know that it goes on and on ?? you’re the boss of your life. in charge of making memoriesand keeping promises. ask your financial professionalhow lincoln financial can help you take chargeof your future. ?? ?? ?? oh, oh, all the way ?? ?? oh, oh ?? ? when your chain of supply goes from here to shanghai, ? ? chips from here, boards from there track it all through the air, that’s ? clearing customs like that hurry up no time flat ? ? all new technology ups brings to me, ? every up .. i think it’s a cool car. i think it’s stylish and it makes a statement at the same time. and i’ve never had a car like that. people don’t totally understand how the volt works. when the battery runs down the gas engine operates. i don’t ever worry about running out of battery .. because it just switches over to my gas engine. i very rarely put gasin my chevy volt. i love my chevy volt and i’ve never loved a car. ?? ?? let’s