Jim Rogers appeared on a segment of Sprott Media on Nov. 20. Rogers is a famous investor who partnered with George Soros (Trades, Portfolio) in the Quantum Fund and later traveled the world as an investment writer and "retired" investor. He tends to take a very long-term macro view on all kinds of investments. Commodities tend to interest him and he takes somewhat of a value approach, often talking about buying when markets are at multiyear lows.
He currently sees opportunities in several areas.Â
Commodities
These are going to do better than stocks in the future. He is not the only valuation-based investor who likes commodiites. Gundlach mentioned the same idea early in 2018, which I wrote about on GuruFocus here. He also included this graph to illustrate their relative valuation:
One example he particularly likes is sugar. You can get exposure to sugar through futures or, more easily, it is availabe through an exchange-traded fund like the iPath Series B Bloomberg Sugar Subindex Total Return ETN (SGGB, Financial).
He doesn't sound very bullish on oil, but says not to sell it.
Russian equities/ bonds/ ruble
Rogers seems to like everything Russian. You can buy exposure to equites through the Van Eck Russia ETF (RSX, Financial) as one example. The RSX trades at a 6.5 times earnings and it pays a 4%-plus dividend. Top 10 holdings are some fairly well-known companies:
Rogers also mentions Zimbabwe as a place where he's investing. Rogers thinks Zimbabwe is a disaster as it has been ruined by a dictator. It used to be one of the more succeesful countries in the British commonwealth. It is likely to improve with the dictator thrown out. Ghana is also an option. Unfortunately, these are very hard countries to invest into.
Risks
The U.S. has a central bank that has no clue what it is doing right now and what it will do in the future.
We have an executive branch that doesn't know what it is doing as well.
Risks are coming out of Washington in the U.S.
Watch the full vide below:
Disclosure: No positions in any stocks mentioned.
