Tags: rogers | short | long | bond

Jim Rogers: Short the Long Bond

By    |   Tuesday, 30 Dec 2008 10:26 AM

Investment superstar Jim Rogers urges investors to stay away from U.S. government bonds as the nation sees its worst recession since World War II.

“I was shorting the long bond in October and November, which obviously went badly,” Rogers told Bloomberg TV. “I covered and plan to short more of the long bond somewhere down the line.”

And why is that? “Treasuries are clearly a bubble,” Rogers maintains.

“Why anyone would give money to the U.S. government for 30 years at an interest rate of 3 percent to 4 percent is beyond comprehension.”

Rogers also blasted the Federal Reserve’s expansionary monetary policy.

“The American government is printing gigantic amounts of money,” he notes.

“That’s going to be the worst problem. They’re propping up everyone in sight. Historically, when you’ve done that, it’s led to inflation, sometimes runaway inflation.”

Rogers is bearish on the dollar. “Because of all the forced liquidations in the market, those who were short dollars have been forced to cover,” he explains.

“My plan is to use this rally to get out of the rest of my U.S. dollars. It’s going the way of the British pound in the 1960s and 1970s.”

Rogers has been buying yen for the past year, and sees the dollar returning to its record low of 79.75 yen from 90.63 yen now.

Many agree. “We think the yen will continue strengthening, especially versus the dollar,” Fabian Eliasson, vice president of currency sales at Mizuho Bank, told Bloomberg.

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Investment superstar Jim Rogers urges investors to stay away from U.S. government bonds as the nation sees its worst recession since World War II.“I was shorting the long bond in October and November, which obviously went badly,” Rogers told Bloomberg TV. “I covered and...
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Tuesday, 30 Dec 2008 10:26 AM
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