Jim Rogers Geo Energy Resources director appointment marks the turn of commodity supercycle
Jim Rogers who pioneered the concept of commodity supercycle and has a commodity index named after him recently joined an Indonesian coal company, Geo Energy Resources, which is listed in Singapore as an independent director. He still believes that the commodity supercycle has not ended although he cautions that he makes mistakes in the past, so please don’t just buy the stock of company he is a director of (or invested in) just because of his past record.
When a famous investor starts to be invited to seminars,talks, TV shows and appears frequently on newspapers, you can be pretty sure he is at the peak of his investing career. Jim Rogers, being bullish on China which accounts for much of the commodities demand growth, neglected that China is undergoing a transformation in its economic model which will translate into a more energy efficient and less commodity intensive growth. This will put a dent in the commodities demand.
When interest rates start to rise, it will be more costly to invest in commodities because as an asset class, it does not gives dividends except perhaps rising in line with inflation.