The very reliable S&A Digest reported on Monday, April 25th the following comments by none
other than Jim Rogers. This is outstanding insight and speaks volumes to me:
One investor, another outspoken government critic, is joining the trade… In an interview with the
Economic Times of
India, Jim Rogers said he plans to short U.S. government bonds
"sometime in the next few weeks [or] months." His reason is simple…
Massive global debt and money-printing will lead to higher interest
rates. And he expects the Fed to resume printing money shortly after
the current round of quantitative easing (QE2) ends:
I
presume that they will stop buying bonds at least for a while because
they have said so many times that they are going to. I do not know how
long that would last because as you pointed out who is going to buy US
bonds at that point and who is going to supply the liquidity to the
market. I would suspect that after a while, they will be back. Who
knows what they will call it? They will make up a new name, but they
will be back, they will be printing money again next time things go bad.
|
Rogers
is also still bullish on silver and agriculture. "Silver has certainly
gone up a lot in the last nine to 10 months. There is no question about
that," he said. "But remember, silver is still 10% below where it was
31 years ago. I bet you do not know many things 10% below where they
were 31 years ago. Silver has been going up but on a historic basis… It
is still very depressed."
Meantime the Federal Open Market Committee, a.k.a. "The Top Federal Reserve Governors and The Chairman" are
going to start meeting Tuesday and Wednesday, and on Wednesday the 27th
at around 2 pm EST they will tell us their decisions and outlook.
The
very insightful and experienced market and stock analyst Dan Ferris had
the following words to share with us today on the upshot of the Fed's
monetary policy:
"The effect is clear. Government stimulus makes stocks go up. Withdrawing it makes stocks go down. The
Fed's money-printing program is a massive stimulus plan.
"It's made stocks go up... The S&P 500 is up about 11% since the Fed starting printing money and buying
Treasury
bonds and mortgage bonds.But this June, QE2 is set to expire... And
when that happens I expect stocks to weaken, possibly enough to produce
some decent bargains for us.
"But
I also think the Fed will eventually resume the stimulus, with the
start of QE3. I don't know if that will take weeks or months. Butthe
longer the Fed waits, the worse stocks will perform,and the more
bargains will appear for us to buy."
Dan Ferris, April 21,2011 The 12% Letter
That
happens to be our opinion and outlook as well. How else can we "buy low
and sell high" and we do want to buy some bargains. Good fortune to us
all!
Disclaimer: Nothing
in this commentary should be construed as investment advice or guidance
or any recommendation to buy or sell any financial instrument. It is
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such. It is solely the opinion of the writer, who is NOT an investment
counselor/professional. All content of this commentary is solely an
expression of his personal interests and is posted as free-of-charge
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