Jim Rogers has been calling for a recession for several months, as he feels that our overwhelming debt levels and upcoming fiscal cliff will propel us into another economic spiral. “It’s coming” he has warned, stating that 2013 and 2014 will be worse than the fallout we saw in 2008. Now that the Fed has announced an extremely aggressive QE3, Rogers has become extremely bearish on the U.S. dollar, feeling that is will suffer the same losses that the pound sterling did years ago. Luckily, Rogers has been kind enough to tell investors exactly how he has been preparing for the coming recession [for more economic news and analysis subscribe to our free newsletter].
First and foremost, Rogers has reiterated his love for agricultural commodities. On a historical basis, Rogers feels these assets are depressed and that they will have plenty of room to run given rising demand for food around the world. Of course this isn’t anything new, Rogers has been touting agricultural for a long time, what is new are his views on metals and foreign currencies.
Recently, Rogers stated that he likes silver better than gold as he feels it to be undervalued by comparison. That is not to say that he dislikes gold, as he also stated that he hopes he is smart enough to buy the precious metal if it were to have a falling out. “He expects the bull market in gold won’t end until it too reaches a bubble sometime near the end of the decade” writes Don Miller. Finally, Rogers has been boasting two foreign currencies in the Japanese yen and Chinese renminbi as he apparently is not as worried about a China slow-down as other analysts are [see also Peter Schiff: The Only Way To Fix The Economy Is To Let It Fail].
Below, we outline five ETFs to help you play a coming recession like Jim Rogers.
- Rogers Intl Commodity Agric ETN (RJA): What better way to bet with Rogers than to invest in an ETN that tracks the index named after him. This fund holds a basket of 20 agricultural contracts with corn and wheat currently bringing in the highest allocations.
- SPDR Gold Trust (GLD): The most popular gold fund in the world, GLD has become a staple holding for long-term portfolios around the world. The ETF has never had a losing year and is especially coveted for its physical exposure to the metal [see also Does GLD Really Hold Gold, Or is it a Scam?].
- iShares Silver Trust (SLV): A physically-backed silver fund that represents one of the best ways to invest in the precious metal. It should be noted that silver is far more volatile than gold, but as Rogers has pointed out, it has a much greater potential to soar than its precious metal counterpart.
- CurrencyShares Japanese Yen Trust (FXY)/Market Vectors-Chinese Renminbi/USD ETN (CNY): Simply put, these two funds are the most popular in the ETF world for tracking their respective currencies, allowing you to bet like Rogers with reasonable liquidity.
Disclosure: No positions at time of writing.