Rogers has reportedly placed a cover on his short positions in financial stocks as of now, but do not take this as a sign that the markets are restored to full health.
Just because Rogers is not betting that big banks will fall much farther doesn’t mean they wont, and it does not mean that they are ready for a recovery rally either. Evidently the feeling is mutual toward the U.S. stocks in general, reports John Kimelman for Barrons. Says Rogers, “I am skeptical about the rally, and the world economy for the next year or two or three,” he says. “But if stocks go down, I can make money with commodities.”
Rogers gained fame as George Soros’ hedge-fund partner in the 1970s and 1980s. This Alabama native is a key player in popularizing the commodity market, and he developed commodity indexes based on futures contracts that in recent years have been turned into ETFs available to all investors.
In a recent interview with Barron’s he stated, “I am not buying U.S. companies mainly because I think we may have seen a bottom but I don’t think we have seen the bottom.” He also points out that In the 1970s, commodities went through the roof even though stocks were a disaster. In the 1930s, commodities rallied first and went up the most long before stocks pulled it together.
His faith and enthusiasm in the commodities market is evident and can be accessed through his ETF:
- Market Vectors RVE Hard Assets Producers ETF (HAP): down 0.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.