muses of the moment

March 4, 2009

DOW down 4.24% yesterday-What should I do now?

Filed under: Long term investing, The Financial Crisis — totallygroovygirlfriday @ 12:37 am

I like Jim Rogers. He is a very wealthy, very good long term (vs. short term) investor. He is the first to say that he is the worst market timer for short term trades. I like long term as well, and on this blog, you will not find short term direction.

Recently he was on India’s financial show.

US financial shows don’t usually ask him on because, well, he tells the truth.

Here is a summary of what Jim Rogers is saying:

  • The United States is in trouble and Washington has no clue what they are up against.
  • He has sold all stocks and equities worldwide except a few in China.
  • People are asking him what stock they should buy. He says they don’t understand, stocks are NOT the place to be, they do not comprehend the severity of the worldwide economic downturn.
  • Fundamentals of commodities are good. Prices are low. He has bought and is buying commodities, because oil reserves are low and food reserves are the lowest in 25 years. Jim sees oil prices and food prices going up within the next 3 years. He plans to own commodities for the next 20-30 years.
  • He sees people wanting to own things, like gold, oil, and food instead of paper assets, financials, and debt. He sees this as a long term trend.
  • He is still in US Dollar, but will be getting out of the dollar some time this year. This is a short term rally of the dollar.
  • The US is the largest debtor nation and China is the largest creditor nation in the world. It doesn’t take a rocket scientist to see a shift in global power from West to East in the next 20 years.

Protect your investments, 401Ks, and savings now.

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