Huge numbers of assets are in level 3 assets, and right now these firms can just make up the value of these assets. This is going to change next year, and it is going to cause a lot of problems. Unlike the Jim Rogers Commodity Index, Bonds are a terrible place to invest.
The best place to invest now is in the currency markets or agricultural commodities, such as the Jim Rogers Commodity Index. The Chinese currency is going to double, triple, or quadruple in the next decade. The costs are must lower there. It is one of the best investments around. There is a stock market bubble and a real estate bubble developing over there, but the stock market and the economy are two completely different things. The currency is a good bet.
Agriculture is one of the best sectors in the Chinese economy. The government is pouring a lot of money into agricultural companies. The commodities bull market began in 1999. Right now we are probably about one third of the way through, so there is still a lot of money to be made in the Jim Rogers Commodity Index. Sugar is a good bet right now because mit is 85% below its all time high. Gold is also an excellent investment.
Jim’s new book, A Bull in China takes a look at the strength in Asia. They have all the reserves. They are going to be the ones who bail out the west. If you give them the right terms, you can get anything. China is trying to slow things down by raising interest rates, but it doesn’t change the China story for the next century. By buying into the Jim Rogers Commodity Index, you can get exposure to this long term trend.
Jim Rogers’ daughter is enrolled in school in Singapore. There are three billion people in Asia, and they save 30% of their income. They don’t ask how many vacation days they will get, they want to work as hard as they can so that they can live like us. Finally, Bernanke should abolish the Fed and resign if he wants to do the best thing for the country.
