Commodity bull market will last longer: Jim Rogers
Published on October 20, 2008 at 10:45
Commodity Online
SINGAPORE: Credit crisis, collapse of banking majors and inflation have led stock and commodities markets to the depths of despair in the last one month. Now that the world is gripped by recession fears, is the commodities bull market all over?
Not really. Jim Rogers, one of the best known global commodities investors, says the commodity bull market will last longer thanks to the global economic meltdown.
”We have had 8-9 periods of forced liquidation over the past 100-150 years wherein everything was liquidated without regard to fundamentals. This is such a period,” Rogers told
Commodity Online in an exclusive e-mail interview.
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Rogers, the best known global guru on commodities, said the commodities market is these days hit by the prospects of growth slowdown in countries like China and and the large-scame economic pessimism in the US and Europe.
”Historically the things which have come out best on the other side are things where the fundamental have been unimpaired. Commodities are the only thing I know with unimpaired fundamentals,” he said.
In fact, Rogers said, what is happening means there will be even less supply of everything in the future.
”The cyclical demand for commodities may slow, but the secular supply will be badly affected so the commodity bull market will last longer and go further in the end,” he added.