American investor and billionaire Jim Rogers continues to urge investors to buy commodities despite a current downturn. The chairman of Rogers Holdings is long known as a commodities guru, and has been calling for a long-term commodities bull market. In his opinion, if you are very good at stock picking, you can buy stocks of commodity producers. But he pointed out that the studies show that you will be the most better-off if you buy the commodities themselves.Rogers recommends to those with less skills to buy a commodities index or an ETF. He admitted that Index and EFT investing outperform most investors 75 or 80 percent of the time, year after year. Jim Rogers laughed at the idea that the Chinese currency is approaching fair value. He thinks that the RMB will go much higher against the dollar in the next ten or twenty years. He referred to the Japanese Yen, which has gone up 600 or 700 percent against the USD over the past few decades.
The American, who lives in Singapore from 2007, says that there will be fluctuations in the RMB’s valuation. But for the long-term investors, keep your RMB. As the RMB is still has tight controls, Rogers suggests buying the Hong Kong dollar, because once the RMB is convertible, the HK dollar will be converted into RMB, so that’s the other way to play the RMB.
Jim Rogers, a native of Demopolis, Alabama, is an author, financial commentator and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times, and most publications dealing with the economy or finance.
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