Predictions 2011: Jim Rogers, Marc Faber and Richard Russell agree
Written by Beacon Research
Thursday, 13 January 2011 07:17
What do Jim Rogers, Marc Faber and Richard Russell have in common? All three men possess
a gift for analyzing financial markets independently and cautiously, and do so with decades of
experience. Each man sells nothing but what’s on his mind—the best kind of advice to cautious
investors.
All three expect 2011 to be a troublesome year, with the growing possibility of unpleasant
surprises, turmoil and wealth destruction.
Starting with Rogers, the commodities market prodigy of the famed Quantum Fund: he expects
all real assets to enjoy a tailwind of inflation as central banks worldwide bailout banks,
businesses and sovereign nations with as much fiat currency as required to forestall default.
“We’re going to, I think, see some of the highest prices we’ve ever seen in many commodities in
2011,” said the 68-year-old Rogers in an interview with India’s Business Channel, ET Now, Jan.
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“I’m very optimistic of all real assets—commodities. Government continues to print money. We
have shortages developing of everything. And that’s going to continue,” he added.
As a humorous note, during a typical rant and condescending tone he regularly uses to express
his disgust for U.S. Fed policy, Rogers’ audio cut out. In another candid moment, Rogers
playfully commented, “I said the wrong thing.”
The no less candid Marc Faber, the publisher of the Gloom, Boom and Doom Report, strongly
suggests that the result of the U.S. Fed’s policy to deliberately debase the U.S. dollar by setting
short-term interest rates artificially low will lower Treasury bond prices over time. He has
repeatedly warned of a Treasury market bubble.
“This [long-term U.S. Treasuries] is a suicidal investment,” Faber said to Bloomberg in a
telephone interview from St. Moritz, Switzerland. “Over time, interest rates on U.S. Treasuries
will go up. Investors will gradually understand that the Federal Reserve wants to have negative
real interest rates. The worst investment is in U.S. long-term bonds.”
Faber has said repeatedly, “I will never sell my gold,” agreeing with the Rogers thesis of
escalating inflation as a direct result of central bankers coordinated monetary policy headed by
the U.S. Fed.
Faber, who heroically predicted a huge rally in stocks at the March 2009 lows, likes gold,
commodities, farmland and emerging market opportunities as a means of hedging against the
depreciation of the world’s reserve currency standard bearers—the U.S. dollar, euro, British
sterling and Japanese yen.
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Predictions 2011: Jim Rogers, Marc Faber and Richard Russell agree
Written by Beacon Research
Thursday, 13 January 2011 07:17
In his latest missive, Richard Russell, the octogenarian and dean of investment newsletters,
wrote in his latest issue of Dow theory Letters, “expect the unexpected” in 2011.
Russell, who served in WWII as a foot soldier in the European theater, sees trouble brewing in
almost any parts of the world, and is also concerned that the U.S. debt load is no longer
serviceable.
....read more on the 85 year old Legend Richard Russell's views HERE
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