Jim Rogers is Short J.P. Morgan (JPM)
Jim Rogers was interviewed on Bloomberg. Sadly for us, most of the things he’s been predicting about government incompetence the past year has been coming true.
-This is a bear market rally that can last days, weeks, even months
-There are more bankruptcies to come
-Government is spending money on the wrong things. Most of these projects are “make work”
-He is worried about government debt market. In a few months, they have quintupled government debt
-Massive short squeeze on the U.S. dollar from forced liquidation. It’s an artificial rally
-He owns the yen and the dollar, not sure where to put the money. Maybe real assets
-The only asset class that has fundamentals improving are raw materials and commodities
-He owns some gold, but thinks there is more money to be made in agriculture and silver. IMF is trying to sell their gold, which me hurt it for a while
-Central bank is trying to keep interest rates down, but eventually it will backfire and rate will go through the roof
-If you write-off everything in sight, sure you can show a profit [talking about C, BAC, and JPM saying they are profitable in January and February 2009]
-He is short J.P. Morgan and covered his Citigroup. He thinks they have gigantic derivatives and off balance sheet exposure, also large credit card division which will be bad
-No position in insurance companies
-Best economic sector in the world next 10-20 years is agriculture and farming. Low inventories and tons of shortages