Thursday, 03 Feb 2011 08:00 AM
By Forrest Jones
More social unrest in Egypt and elsewhere is on the way,
which is bullish for commodities, says investor guru Jim Rogers.
Currencies, meanwhile, will stay in turmoil, which should also
bring out the commodities bulls, Rogers tells CNBC.
"I don't own very many equities," says Rogers, who co-founded
the Quantum Fund with billionaire George Soros in the 1970s.
"I don't know what's going to happen but I expect more
currencies turmoil, more social unrest, more governments
collapsing so I invest more in currencies and commodities than
stock," he said.
Food shortages meanwhile will make agricultural commodities rise
even more.
"You don't just snap your fingers and have palm oil, all this
takes time."
Popular uprisings have toppled governments in Tunisia and Egypt
in part due to high food prices.
Egyptian President Hosni Mubarak has said he will not seek
reelection later this year in wake of the massive protests, yet
unrest continues there.
Investors often buy commodities such as oil, metals or
agricultural products amid such uncertainty.
Global economic recovery is also helping, pushing commodities up
for a fifth straight month in January, the longest rally since
March 2000, Bloomberg reports.
Wheat, cotton, copper, oil and hogs have all seen price hikes
recently.
"You got things really accelerating on the demand side of the
equation, and there continues to be some supply constraints,"
James Dailey, who manages $185 million at TEAM Financial Asset
Management in Harrisburg, Pennsylvania, tells Bloomberg.
"The monetary backdrop is like adding lighter fluid to the
fire."
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