“It’s unavoidable” says Jim Rogers of a coming recession. He notes that roughly every four to six years has seen an economic slowdown in the U.S., and that 2013 and 2014 will be no exception to that rule. For months now, Rogers has been warning investors that our culminating debt issues and a sluggish economy will lead to a recession that is even worse than that of 2008. He has continually told investors to be very worried and to prepare themselves, but unlike most others who predict a doomsday-like scenario, Rogers has given advice on how to prepare yourself [for more economic news and analysis subscribe to our free newsletter].
Agriculture. It is no secret that the investing guru has been a huge fan of this sector for decades, but he has continually reiterated the point that owning real assets like agriculture is the only way to protect yourself against an inevitable crash. “Few parts of the world economy will boom over the next few years, but agriculture will be one of them” said Rogers.
Mr. Rogers justifies his love by going back to the basics of commodity investing. “With all commodities, the most important factor is supply and demand” he states. After all, a commodity is only worth what someone will pay for it and that price has a tendency to rapidly change over time. As for agricultural products specifically, Rogers notes that inventories are near historic lows as our global economy has been consuming more than we have been producing for nearly a decade. He is also quick to point out the disturbing trend of a shortage of farmers that could impact these assets [see also Jim Rogers: The U.S. Will Suffer Several Lost Decades].
For those who buy into Rogers’ bullishness on the ag world, we outline several investments to help you invest like this legendary trader.
- Rogers Intl Commodity Agriculture ETN (RJA): A fund inspired by the man himself, RJA invests in a basket of 20 agricultural commodity futures and is a sub-index of the Rogers International Commodity Index.
- Market Vectors-Agribusiness ETF (MOO): With one of the best tickers in the ETF world, MOO invests in global agribusiness firms to give investors a diversified exposure to this sector. The fund has gained more than 11% this year alone [see also Invest Like George Soros With This Commodity Stock].
- Teucrium Agriculture Fund (TAGS): This futures-based product grants exposure to four ETFs tracking corn, wheat, soybeans, and sugar while employing a strategy that aims to fight contango.
Disclosure: No positions at time of writing.