How Jim Rogers is Preparing for a Recession

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.

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Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETF Analysis, Commodity ETFs, Gold, Precious Metals, Silver and tagged , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

15 Responses to “How Jim Rogers is Preparing for a Recession”

  1. Maxver2000 says:

    The last time bow tie got it right was when he teamed with Geo. Soros to form the Quantum Fund.
    He now sits over in Shanghai telling us how good Shanghai is, how good China is, how good gold is, how good commodities are; and lately telling us Russia might now be good. Can anyone explain why CNBC is always putting a mike in this guy’s face.

  2. [...] These blogs are personally-run by their authors [see also How Jim Rogers is Preparing for a Recession]. [...]

  3. [...] the issues in today’s economy. Sporting his typical Orville Redenbacher-like bowtie and suit, Mr. Rogers had plenty to say about recent actions from the Fed and what impacts it will have on our future. [...]

  4. [...] hard assets. His hard-nose investing theory has payed off quite handsomely, as his name has become renown around the world and investors hang on his every word. Unfortunately, his words as of late paint a relatively gloomy [...]

  5. [...] cliff and how this may only make that worse, while others have been a bit more brash about their distaste for actionsfrom Bernanke and the Fed. Two men in particular, Peter Schiff and Jim Rogers, have been very vocal [...]

  6. [...] Finally, Rogers weighed in on how the new open-ended quantitative easing program will impact the future of the ag world. If the continue to print more money, “that will just be icing on the cake” as far as Rogers is concerned. Money printing will debase the dollar and should allow for real assets like ag to make a nice jump. For those of you who buy in to Rogers’ theory on the agricultural world, we outline several options to invest in these hard assets to allow your portfolio to potentially rack up some nice profits [see also How Jim Rogers is Preparing for a Recession]. [...]

  7. [...] analysts, like Jim Rogers, have been warning about a coming recession in 2013, while other big names like Roubini and Faber have been even morebold with their statements. [...]

  8. [...] been down on the U.S. economy for quite some time as he feels that 2013 and 2014 will see markets slip into a deep recession. Now, Mr. Rogers has taken his claims a step further by claiming that the “Lost Decade” was not [...]

  9. [...] Tuesday’s election results, analysts of all kinds are weighing in on how they think the next four years will go. With Barack Obama winning his second term, some are optimistic, while others are quite fearful. In [...]

  10. [...] Tuesday’s election results, analysts of all kinds are weighing in on how they think the next four years will go. With Barack Obama winning his second term, some are optimistic, while others are quite fearful. In [...]

  11. [...] Tuesday’s election results, analysts of all kinds are weighing in on how they think the next four years will go. With Barack Obama winning his second term, some are optimistic, while others are quite fearful. In [...]

  12. [...] turns out. If we do go over the cliff, many feel that spending cuts as well as tax increases will send the economy into a recession. While this would initially damage just about everything in its path, gold will have the ability to [...]

  13. [...] impact on the long-term health of the company. After all, we have seen a number of acquisitions looked on unfavorably by the market, only to watch the stock regain lost ground once the news blows over. If you fall [...]

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  15. [...] Resource News Report: A broad-based commodity site with a nice tilt towards gold. [...]

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