Thursday, September 22, 2011

Jim Rogers: Chinese Yuan Good Bet; Swiss Make 'Huge Mistake' - Barron's (blog)

Commodities investor Jim Rogers was on CNBC Wednesday arguing that the Swiss National Bank made  ”a huge mistake” by deciding to limit the franc’s appreciation against the euro.

While such a move might work temporarily, “the market will have more money in the end than the SNB,” said Rogers, who was the co-founder of the Quantum Fund with George Soros.

Rogers also has helped design the Elements Rogers International Commodity Agriculture ETN (RJA). He also put together the benchmark for the Market Vectors RVE Hard Assets ETF (HAP).

After the Swiss bank’s move on Tuesday, the PowerShares U.S. Dollar Index ETF (UUP) rose sharply.

The risk, says Rogers, is that the Swiss bank will “totally debase the Swiss franc trying to keep Switzerland ‘competitive’ which will then destroy the traditional Swiss financial industry.”

The Chinese yuan (CYB) is probably the best safe-haven currency now, he added. The dollar is probably also a good bet in the short-term, but the “absolute worse” over the longer-term, said Rogers.

Last month, he said that stocks weren’t a good play generally and that a “supercycle” in commodities will last longer than any previous bull market of its kind. He believes commodities have another 20-25 years of upside left to run.


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