The Hindu Business Line : Investors should consider fixed income assets: Rogers

Chennai, April 5 Hapless investors who have had enough of disappointments from stocks this year, could look at other opportunities. Short-term fixed income could be ‘one option’, says American investor and financial commentator Mr Jim Rogers.

“I am selling short longer-term fixed income assets in various parts of the world. Long rates will be going higher in most of the world,” he adds. “Commodities remain the ‘other alternative’.”

With Asian governments such as like India and China already beginning initiatives to douse the inflation fire, short-term bond yields may not drop further, making them relatively safe investments.

“The Chinese are rightfully trying to stop it as are several other governments. Once inflation takes hold, it is very difficult and expensive to break it,” Mr Rogers told Business Line from Singapore over the email.

He lauded initiatives taken by these governments to scrap import duties on essential commodities.

Last week, the Indian Government scrapped import duties on crude edible oils.

Preventing foreign inflows, however, did not find favour with him as he termed such a move an act of ‘insanity’. Mr Rogers, who expects the current run in commodities to continue, also disliked the idea of banning commodity futures.

Fed’s actions

In characteristic style, he remained critical of the US Fed’s actions.

“Everyone is complaining about inflation, except the US central bank, which lies and says there is no inflation,”

Mr. Rogers said. When queried why the Fed would lie, the temperamental investment guru shot back saying, “You believe their numbers?”

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