I’ve always got time to listen to Rogers. He has done his research and has his opinions. He doesn’t change on a daily basis like most talking heads and when he is asked a question that he can’t answer he isn’t afraid to not try and answer it. And of course he has a long history of being pretty accurate in his thinking.
Here are his comments post S&P downgrade in an interview with Bloomberg:
- S&P downgrade is not news, everyone has known for a long time that the U.S. is the largest debtor nation in the world.
- Markets are going down because Europe has problems, U.S. has problems and China is trying to slow things down.
- Was asked how we know when there is capitulation, Rogers as always with the intelligent answer of “I wish I knew” (most talking heads would answer that question even though they could not possibly know an answer).
- Normally when you see selling building up like this we are heading towards a big selling climax, if there is one Rogers will consider covering some or all of his shorts.
- Anybody who is investing based on the downgrade should not be investing. The world has known this for a long, long time.
- Markets look six months to a year ahead and there are some bad things coming — that is what drives the market
- Wouldn’t you balk on a bailout for Italians if you were a hard-working German taxpayer?
- Rogers owns the Euro and the U.S. dollar; he owns it because everyone is so bearish on it.
- Hopes his agriculture, gold and silver will protect him if things go horribly bad
- The U.S. is going to print more money, that is all Bernanke knows and that is good for real assets.
- The only thing that works is facing the consequences. Let people who are bankrupt go bankrupt. Can’t prop everything up forever. The Japanese have tried it for 20 years and it has not worked.
- Japanese stock market 75% below where it was 20 years ago. The U.S. is going to have another two or three lost decades if they don’t change the course.
- Worried about gold and silver because they are going up to fast, if they do he will buy more because they are going much, much higher just like agriculture and other commodities.
- Already in rare territory for the number of days in a row the markets have come down so he is looking to cover some shorts.
- More inflation is coming, whenever people print money it leads to inflation, not happy about it as it will cause social unrest so you must prepare yourself for it (own commodities).
- In the early 90s when Japan propped up Zombie banks Scandinavia had the same problem. They let people go bankrupt and reorganized and have been booming since.
- Denying reality never works.
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