Jim Rogers On The Markets: August 2014

Sunday, August 31, 2014

Will Mason Graphite Supply Tesla (TSLA)?

Related Stocks: Tesla Motors (TSLA), Mason Graphite

Saturday, August 30, 2014

Bullish On Electric Vehicles

Related stocks: Tesla Motors (TSLA), Mason Graphite

Friday, August 29, 2014

Stock Picking: Mason Graphite (CVE:LLG)

Related Stocks: Mason Graphite Inc (CVE:LLG), Tesla Motors (TSLA)

Wednesday, August 27, 2014

Forex Markets: Sanctions Are Bearish For The U.S. Dollar

Related trading instruments: EURUSD forex cross, USDJPY forex cross, AUDUSD forex cross;

Tuesday, August 26, 2014

This is how markets work. Something, a stock, land, or some other store of value, will bump along at a stable price. Eventually something changes the supply-demand balance. The price starts going up because people realize, "Hey, they have a new product," or "The railroad is coming through Smithtown." The price goes up for legitimate and sound reasons.

There comes a time though, when people buy land in Smithtown only because its price is going up. At that point, my mother calls me and says, "I want to buy some acres, " or "I want to buy this stock."

"Why mother?"

"Well, Jim, its tripled over the past year."

"That`s not the way you are supposed to do it," I say. "You don`t buy it because it`s tripled. You buy it before it triples."

But this is what happens. People see the price going up and know that here is the gravy train that is going to make them rich. The newspaper will have stories about Joe and Sally, how they are now rich because they bought all this land or a few shares of stock in the coal mine. The price now goes up because the price is going up.

This stock or these acres become vastly overpriced. The smart guys who bought early, who bought because their family had lived in Smithtown for a hundred years, they start selling. They realize that this is becoming unsound. It turns out it`s not economical to put yet another General Motors factory here, so new people don`t buy land. The demand tapers off.

For sound economic reasons the price starts coming down. Now we have passed the peak. There are now sound economic reasons for manufacturers to put their factories in Taiwan instead of Smithtown. The price of land goes down and goes down - all for sound economic reasons.

Now comes the time when people start selling because the price is going down. People look back and say, "Everybody knows you should not own land in Smithtown. It`s been going down for 5 years."

Everybody now sells because its the only thing to do. Before there was a buying panic, now there`s a selling panic. People scream, "I don`t care if land is cheap in Smithtown and I can have a mansion there for virtually nothing. Everybody knows its a bad place to invest. Get me out!"

Prices collapse. Everybody knows the price is going to nothing. Panic, the crescendo - that`S when you buy because then it`s all over. It will be a while before things start to come back, but come back they will.

Monday, August 25, 2014

Coming Into The Market With 600 Dollars

I came into the market with 600 dollars in 1968 and left in 1980 with millions. There had been costs, however. I had two short marriages to women who could not understand my passion for hard work, something my brothers and I had inherited from our father. I could not see the need for a new sofa when I could put the money to work for us in the market. I was convinced, and still am, that every dollar a young man saves, properly invested, will return him twenty over the course of his life.

Sunday, August 24, 2014

Money: When It`s A Good Decision To Borrow Huge Amounts Of Money

There is nothing wrong with borrowing huge amounts of money - as a country, as a family, as an individual - as long as you you are putting it into productive assets, building for the future.

Saturday, August 23, 2014

Demographics & Investing

The younger the population of a country, the more open to change it is. A young population embraces change the way an older population reveres the past. One is not necessarily better than the other - and the re is nothing particularly revealing in pointing any of this out - unless, of course, you are thinking of the future or thinking about investing.

Friday, August 22, 2014

Gold: There Will Be An Opportunity

I am not a buyer of gold, but certainly not a seller of gold. I own gold. I suspect there will be a chance to buy gold sometime in the next year or two. I am doing nothing at the moment.

Related stocks and ETFs: Newmont Mining (NEM), Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD)

Thursday, August 21, 2014

Investing: Hostility Is A Great Indicator

If I do have a strength, it is the ability to look at Industry X or Country Y, on which everybody is really down, and exercise the courage, the sense, the stupidity, whatever it is, to buy it, even though everybody is telling me I am nuts to do so. If people become hostile when you say you are buying, it`S probably the right thing to do. Hostility is a great indicator.

Wednesday, August 20, 2014

Markets: What Is Going To Happen Next

It`s pretty clear in my view what is going to happen. As the U.S. pulls back, and they say they will continue to pull back, eventually interest rates will go higher or stock markets will go down, or both. And unfortunately when that happens, these people in Washington are bureaucrats, they are academics and they are going to get scared and panic when people call them up and say the pain is too great, they will start to print money again.

Related trading instruments: SPDR S&P 500 ETF Trust (SPY), Nasdaq 100 Index, iShares MSCI Emerging Markets Indx (ETF) (EEM)

Tuesday, August 19, 2014

U.S. Interest Rates Will Rise

Investing: Currencies & Stock Prices

Most travelers have a vague understanding that the ups and downs of a currency are an indication of the health of a country, much the way the rise and fall of a stock price discloses the problems and strengths of a company.

Related instruments: EURUSD forex, USDJPY forex;

Monday, August 18, 2014

Investing: The Losses Will Kill You

The losses will kill you. They ruin your compounding rate, and compounding is the magic of investing.

Tuesday, August 12, 2014

Natural Gas: A Good Bet

Related trading instruments: United States Natural Gas Fund (UNG), Chesapeake Energy (CHK), Southwestern Energy Company (SWN), Cabot Oil & Gas Corp (COG)