Expect a big rally in stocks after the war is over and a bigger rally in commodities in next few years: Jim Rogers

"I am not worried about seven rate hikes not for a while because now the central bankers are scared because of the war and that is one reason that I suspect we are going to have a big rally before too much longer," says Jim Rogers, Investor and Author, Street Smarts: Adventures on the Road and in the Markets.

Jim Rogers commented

I have been saying we should buy commodities for the last few months and even longer because we had seen a lot of money printing. Whenever there is money printing, prices go higher and especially if there is a war.

Crude is on the boil, rising to levels we have not seen since 2008. It, of course, impacts India a lot. We are one of the largest energy consumers in the world and one of the largest importers of crude oil as well.

I do not like to buy when something is going straight up like last week but when things calm down again I will buy more energy.

When you buy more of these commodities, which ones?

Well, I have mentioned gold and silver. I like to buy the ETFs because I am lazy but also because many studies have shown that if you buy the index you are going to do better than most people. I would buy commodity indexes, things like RJA on the New York Stock Exchange, it is an agricultural index, those things I hope will do better than individual commodities. They usually do.

Now the markets say well, the central banks are not going to raise interest rates a lot and so when things calm down,there is going to be a very big rally because now people are not worried about central banks.

I am going to buy more silver, but not now because silver is going straight up but when silver and gold correct, I am going to buy more of both because sometime in the next few years, we are going to have serious problems in the world financial markets and money markets and whenever that happens, people buy gold and silver.

Well, war always makes commodities go up. I expect this war to be over or calm down soon and that will make commodities correct and then I will buy more because I can see there is going to be inflation, with more money printing in the future and if you own the things that go up in price, you make money.

When the war calms down, central banks are not going to be aggressive and stocks will do well too. I expect one big rally in stocks after the war is over but I also expect over the next few years a bigger rally in commodities. I would probably sell my stocks in the big blow off rally and buy more commodities. And I do not have any shorts now. I am not short any stocks but if this big rally comes. I will start selling short stocks again.

When the war calms down, central banks are not going to be aggressive and stocks will do well too. I expect one big rally in stocks after the war is over but I also expect over the next few years a bigger rally in commodities. I would probably sell my stocks in the big blow off rally and buy more commodities. And I do not have any shorts now. I am not short any stocks but if this big rally comes. I will start selling short stocks again.

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