As mentioned in our previous posts, Jim Rogers is not afraid to temporarily be on the other side of the trade. The $USD is a perfect example. For a good portion of 2009, Jim Rogers has generally been bearish as the Fed continues to print money. But, as that trade becomes crowded, the possibility of a short squeeze increases and it might be smart to be bullish for the short term.
Via: Reuters
Well-known investor Jim Rogers said on Wednesday he has been buying dollars over the past two months to bet on a near-term rebound, but remains very bearish about the U.S. currency over the longer term.
“Over the past couple of months I have been accumulating U.S. dollars … because there are too many bears,” Rogers told the Reuters Investment 2010 Outlook Summit in New York.
But he said the global financial crisis is merely in a temporary reprieve. Longer term, huge U.S. government debt issuance and a debilitated dollar will drag the world into a deeper crisis, he said.
There is a strong possibility that within the next three years or so that longer maturity U.S. government bond yields could reach double digits, as in the early 1980s, he added.
The U.S. 10-year Treasury note’s yield, which moves inversely to its price, hit a high of 15.8 percent in September 1981, according to Global Financial Data.
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Jim Rogers, jim rogers dollar, Jim Rogers Reuters
December 10th, 2009 at 10:56 pm
Yep, a short rally in the dollar will likely occur. But at the end of the day, the U.S. dollar is going to hit a crisis and collapse.