Rogers is short because he is not optimistic about what’s going to happen in the world over the next two or three years.
“I’m short emerging markets, short American technology, short European stocks – I don’t see much reason to own equities,” he says.
“If I were buying anything I’d be buying agricultural commodities,” he says. “Going forward we’re going to have huge shortages of everything – including farmers – I think ag will be a great place for the next 10-20 years,” he says.
But don’t take that to mean that ag stocks are a buy – that’s not what he means.
“Yale did a study recently showing that investors made 300% more by putting money in commodities themselves rather than commodity stocks – that is unless you’re a great stock picker.”
If his thesis doesn’t hold and the economies of the world improve, “I’ll make money in commodities because (increased demand will generate) shortages,” he says. “But if the world doesn’t get better, then governments print money and the way to protect against that is to own real assets.”
In other words, he thinks commodities are a win/win.