The commodities market I know you think there’s a secular bull market there crv index is down 12% since the end of April. Have you re-evaluated any of your commodity investments on more of a short term basis?
Why? Because they are down 12%? I think Ronda, markets go up at….at…. markets have 30 – 40 -50% corrections all the time. If you look at the top and bottom of any asset, any stock, anything in any one year the range between the bottom and top is at least 30 to 40 to 60%. No, 12% no, that’s the way markets work.
So let me ask you about 1 commodity in particular especially if we are printing money all over the place, is gold undervalued right now?
Well I own gold, I wouldn’t buy gold at the moment, if the gold is down I certainly would buy more gold, I’m not selling it. You know Ronda, gold has been up for 10 years in a row that’s pretty unusual for any asset it looks like it might be up 11 years in a row, maybe it’s going to go up 14 years in a row, I don’t know but I don’t want to buy gold right now but if it goes down I’m going to buy a lot more.
Anything else in the metals ? Copper, silver ?
Well, Silver… silver goes down and I had to buy one today I’d buy silver because it is 25% below it’s all time high while gold recently made an all time high. But I’m not buying either today if I’d be buying anything today I’d buy agriculture.
What about the issue though if we do see this economic slowdown, severe recessions that you would have an impact with commodity demand, short term at least.
Well of course, I got shorts, I mean I’m long on commodities and some currencies, I’ve sold short European stocks, I’ve sold short emerging market stocks, I’ve sold short American technology stocks. So sure the kind of scenario you vow on, my shorts I hope will protect me, and in that kind of scenario Ronda they’re going to print more money and when they print more money you want to own real assets, you want to own commodities and there’s shortages in commodities.
In the 1970’s Ronda we had terrible economies and terrible stock markets all over the world, commodities went through the roof. We had one of the great bull markets of all times in commodities and people made fortunes if they owned commodities and were short stocks or avoided stocks. We have the 1970’s again.
In term of the agg markets is that across the board ? Corn, wheat, sugar, soy
My lawyer won’t let me buy individual commodities so I own the Roger commodities, the agriculture commodities, I own all the Roger commodity indexes I especially own the Roger agriculture index.
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