Buy Farmland and Soft Commodities like sugar, cotton:How to Invest Like Jim Rogers

by Dave

Jim Rogers again talking about how depressed agriculture commodities are relatively to others which have boomed recently and that is where investors should look. (Sugar is still off 70% of its all-time high reached in 1974, Wheat – he doesn’t mention it, is at 200 yr lows, in inflation-adjusted terms.)

Jim Rogers, legendary contrarian investor, author and chairman of Rogers Holdings, is still betting on $2,000 gold in 10 years and in the meantime is looking to profit from China, the euro and other commodities.
Aside from the precious metals that we talked about, what other commodities do you like?

Rogers: Agriculture still. Agriculture’s still very depressed. Frequently, one will make a lot of money if you buy the things that are depressed [and] where things might be getting better.

So what happens to the world economy as you see it?

Rogers : We’re certainly going to have another recession in the next two or three years. We’ve had recessions every four to six years since the beginning of time. So by 2012, we’re getting ready to have another one, if history’s any guide. I suspect it will happen before then, because there are still so many imbalances in the world which have to be sorted out.

What’s the biggest positive and the biggest negative that you see in the big macro picture right now for the world economy?

Rogers: The gigantic debt imbalances. Throughout history, when you’ve had these kind of imbalances, they usually worked their way out in the currency market. It used to be the gold market when we had the gold standard. We’ve been seeing currency dislocations for two or three years. We’re [going to] see a lot more. Everybody who gets involved with you should learn about currency because we’re [going to] see many, many, many, more currency problems in the next two or three years. And that’s [going to] affect us all, including stock markets and including economies.

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