Jim Rogers Advocates Buying Agriculture To Protect Your Net Worth

By Andrew Abraham on July 17, 2009
Everyone is concerned these days on how to protect their net wealth. Nothing is safe. Leaving your money…regardless if it is British pounds ( which fell from the low 2.00 to 1.60s to the US dollar), the US dollar or even Eurodollars ( do to a breakup in the EU). So far the specter of inflation has not come to life. However it is virtually unthinkable that there will not be any inflation with all the money that has been injected into the worlds money supply. The facts are very simple. There are droughts, more demands from a growing population ( China, India..etc) and diminished supplies of basic commodities. Do you remember rice last year? All of these are a catalyst of inflation. Jim Rogers advocates buying agriculturals to protect your net worth. The fact is, I remember being at the luxury hotel the Breakers in Palm Beach Florida in about 2005 and front page of money magazine ( I think) was Jim speaking about the housing bubble in the US. He was right! How many people wished they would have listened to him?

To be honest.. I greatly pared down my real estate holding but did not sell everything and has been very aggravating. Can you imagine if Jim Rogers is correct again? Jim Rogers has been around a long time with an interesting track record.
I have to agree with a great of his thinkings regarding the US dollar, Inflation and Commodity trading. However I differ in the fact just jump and go buy various commodities or sell US dollars etc without a thought out plan. Timing is everything. You can be right long term but suffer in the short run ( and lose money). Instead of just predicting…let the price action delineate your investment actions. This is what trend following is all about. Follow the price action. It is extremely probable that the predictions of Jim Rogers will be actualized. In my opinion the only way to benefit from the potentials is to have a well thought out plan based on risk and money management. If this is not your core competency seek the advice of your financial planner or more aptly a commodity trading advisor that understands risk. Potentially we could be headed back in times like the early 1980s with high interest and high inflation or even worse with potential hyperinflation. Anything is possible.

You have a choice, you can do nothing…keep your money in the bank…and inflation will wipe out your net worth… or you can ride the inflation wave (when and if it comes) and look to protect your net wealth.