Despite the recent price volatility, and tightening measures from China and India, renowned global investor Jim Rogers says commodities are where you should be putting your money.
“If the world economy gets better, commodities are going to make a fortune. If the world economy does not get better, commodities are the place to be because they are going to print more money, and that's how you protect yourself,” Rogers told CNBC Thursday.
He is not expecting oil to hit the psychological $150 mark in the near term but says the prices will stay high.
“We are running out of known reserve of oil -- these are simple facts,” he pointed out. “We have not had a major elephant oil field discovered in over 40 years.”
He concedes that there will be volatility in the commodities market, but is bullish on its long-term uptrend.
“Nothing goes straight up or straight down,” he said. “But these corrections will be nothing more than corrections in a major bull market which has years to go.”
He warns that now is not a time to own stocks and bonds, and says it’s a myth when brokers say stocks are an inflation hedge.
“Throughout history, go back and look, you know we had huge inflation in the 70s, stocks were not in a good place to be,” Rogers said.
“This is the time when you should own real assets, not stocks and bonds.”
Watch Jim Roger's full interview on The Kudlow Report here.
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Watch Jim Rogers' Past Interviews on CNBC:
- Gold Could Exceed $2,000: Rogers
- More Upside for Euro-Dollar