Jim Rogers was on CNBC today and told them that the recent decline in commodity prices is ‘artificial.’
“With MF Global going bankrupt – which was a gigantic commodities firm – there was a lot of artificial forced liquidation of commodities. People have to sell whether they like it or not. It’s artificial selling right now,” Rogers said.
Rogers goes on to say the drop isn’t all that surprising, “This happened before in 2008, when Lehman and AIG went bankrupt, they were both huge in commodities and everybody had to sell,” he said.
Rogers remains extremely bullish on commodities and thinks investors can benefit whichever way the global economy goes.
“I’m long commodities and currencies, because if the world gets better, the shortages in commodities will make sure I make money; if the world economy doesn’t get better, I’d rather own commodities because they’re going to print money,” Jim Rogers said.
Rogers says he has used this most recent drop in commodities to buy up agricultural commodities, and is waiting for gold to go down more before adding to his position.
Rogers is very bullish on stocks right now saying, “This is like the 1970s, in the 1970s stocks did nothing. Commodities went through the roof. I’m short stocks and long commodities for the most part.”
Rogers also owns the Euro because “everyone is beating it down so badly and the US dollar too.”
Jim Rogers has a reputation of being one step ahead and has predicted the fall of the U.S. dollar many times because of the continual printing of money by the Fed.