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Jim Rogers: Here's What I'm Buying

Published: Tuesday, 15 Jul 2008 | 12:03 PM ET

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By: CNBC.com

Jim Rogers has a sector pick -- and a major pan: The CEO of Rogers Holdings told CNBC that the government should not bail out Fannie Mae [FNM Loading... () ] or Freddie Mac [FRE Loading... () ], but should let them fail.

The Treasury Department and Federal Reserve said they would bolster Fannie and Freddie with vast infusions of aid. But Rogers believes that will only prolong economic weakness, increase the budget deficit -- and destroy the effectiveness of such rescue measures when they're really needed.

"In two years or three years, when six or eight other [institutions] are failing, America won't have any more bullets left," he said.

Rogers noted that he's "been short Fannie Mae since I came here three years ago or four years ago," adding that "I'm short lots of banks."

Recommendations:

So what does the investor like?

Rogers said he was investing in airlines, which have seen tough times due to soaring fuel costs -- and fears of further increases in oil prices.

"I am buying airlines. If you fly a lot, you'll see that you can't get a seat, the rates are going higher. The capacity is going down and the demand is still there," Rogers said.

Disclosures:

Disclosures information was not immediately available for Rogers or for his firm.

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Top Airline Stocks:

- Delta Air Lines [DAL Loading... () ]