Cover of MoneyWeek magazine issue no 537

Real assets

13 May 2011 / Issue 537

The commodities worth hoarding

PLUS:

  • Jim Rogers' trade of the decade
  • Could Greek debt bring down the euro?
  • How Edinburgh could steal the City's crown

Excerpt

What Jim Rogers is buying 

Jim Rogers has just arrived in Edinburgh from New York when I meet him in Edinburgh’s Usher Hall. He’s got to put up with me for half an hour or so; then he’s giving the closing speech at the packed-out CFA Conference here. Then he’s back on another plane (the world’s best-known commodity guru lives in Singapore).

He was hoping for a few easy questions. So I ask him what he would do if he was in charge of the US Federal Reserve, given how he feels about Ben Bernanke’s efforts. Bernanke, says Rogers, just like Alan Greenspan before him, “has absolutely no concept” of economics, finance or currencies. There will be a “currency crisis in the US”. First, he says, he would resign and head for the pub. I say that’s not allowed. So he says he would abolish the Fed and then head for the pub. I say that isn’t allowed either. This leads us on to a conversation about how economies work when they have no central bank. You can read more on this bit of our chat on my blog.

So what’s he buying now? He hates the US dollar. But he is holding it for the short term as everyone hates it and that makes it oversold. But what’s his trade of the decade? Several people I’ve asked recently say the Singapore dollar or a basket of Asian currencies – after all, when economies grow, their stockmarkets don’t usually go up, but their currencies pretty much always do.

However, while Rogers holds most of these, they aren’t his trade of the decade…

• Read the full editor’s letter here: What Jim Rogers is buying

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