Friday, December 9, 2011

Jim Rogers Slams The Fed, Sees QE3, But Cautious on Gold

Legendary investor Jim Rogers’ latest criticism of the Federal Reserve included the contention that the U.S. central bank is “ruining an entire class of investors.”

In an interview with Yahoo Finance’s “Breakout,” Rogers argued that the Fed’s artificially low interest rates are really “something akin to QE3 in drag.”  The Fed is “lying to us,” he stated, “One reason the markets are holding up so well is that they are printing money as fast as they can.”

Rogers – known best for starting the Quantum Fund with George Soros in the 1970's and for his bullish bets on commodities over the past decade – went on to say that the Bernanke-led Fed is continuing to punish savers and kick the can further down the road.  In doing so, the central bank is preventing a sustainable economic recovery from taking shape.

As for his current investment stance, Rogers stated that “I’m long commodities and currencies; I’m short emerging market stocks, U.S. technology stocks, and I’m short European stocks.”

When asked specifically about gold, he presented a more cautious view on the yellow metal.  ”Gold has been up 11 years in a row…it is very unusual for any asset in world history and I’d expect the correction to continue.”

However, Rogers – who has been bullish on gold for the better part of the past decade – noted that despite the potential for a shorter-term decline he does not intend to sell his gold position and would consider adding on weakness.


Jim Rogers

Warren Buffett

Nouriel Roubini