Yesterday on Bloomberg they interviewed Jim Rogers, who continued to talk about the same basic themes: go long commodities, and go long China. Obviously, having written books on commodities and China he is obviously predisposed to continue these ideas. However, his argument about the impending death of the euro, strength in precious metals and commodity currencies are all things I’ve been saying as well. While I think China is a great long term investment, now may not be the time to buy, as the primary goal of the government is to avoid inflationary measures, and what the Chinese government wants, the Chinese government gets.
Rogers also favors agricultural commodities. This is definitely a valid investment strategy- the population is only going to get larger, and the need for food supplies is going to increase. However, unlike gold, wheat, corn, soybeans, can all be regrown- they are not in finite supply. Because of this, I do not expect that increasing production will strain the prices quite as much- scientists are constantly developing more efficient ways of growing crops- we’re not producing any more gold. However, I do believe, although it is hard to find, that farm land in emerging nations, such as those in southeast Asia, will remain a good investment. This requires more sophisticated investing than buying futures contracts, but in the long run, those who own arable land will be wealthy.
You can see the rest of the Roger’s interview and article here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=auuRue7wyMWM&pos=6
You make an excellent point re arable land. What are your thoughts on the struggle we will see in developing nations (as population rises) between those who wish to develop land into skyscrapers and apartment complexes and farmers who provide the people with sustenance?
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