Wednesday, August 26, 2015

Jim Rogers: Don’t Rule Out a Bull Run in Commodities

“As far as commodities are concerned, it’s all about supply and demand, and you’re having huge cutbacks in supply. We’re already having supply problems in some agricultural products and we’re going to have problems with oil products,” he said in an interview with the BBC’s Radio 4.

“So I don’t think that the bull markets in commodities have gone away forever, because supply is going to be a [factor]. You can have a bull market with flat demand or even declining demand if supply is not there,” he said.

“One old saying in the investment world is that the cure for low prices is low prices. They solve themselves as supply dries up,” he said in the Radio 4 interview.

“Oil reserves have been declining all over the world. We’ve been consuming more than we’ve been finding and now the frackers are out of business. Or will be out of business soon, they may not know it yet, but they are going to be out of business soon. So don’t give up on commodities,” said Rogers.

(Via MarketWatch)

1 comment:

  1. That's what we want to see: declining incomes and a bull run in commodities.