Friday, May 6, 2011

Jim Rogers Says Corrections Not Over

In an interview with the Economic Times, Jim Rogers said he's not moving in to take advantage of lower prices to buy some more commodities. Although he specifically disclaimed any ability to time the market, he did make it clear that he's too uncertain to declare a bottom right now. Instead, he's sitting back and watching to see how the corrections play out.
ET Now: ...Many base metals are at multi-month lows. Do you see this to be the starting point of more downward pressure? Where do you see the next 3 months for these commodities and how volatile they can be?

Jim Rogers: Again, I have absolutely no idea. 5% correction in gold is meaningless. These things correct 10-15-20-30% every year. Nothing unusual about that. That is the way the markets work. I do not see anything unusual. I expect there would be more correction during the course of the bull market. I hope that the bull market goes up, consolidates, goes up, consolidates, goes up and consolidates for years to come. That is my expectation for all commodities.
In other words, "watch it."

I can say that gold tends to be seasonally weak until mid- or late summer. Although there has been a fair relief rally in gold today, it's not very likely that the metal will make $1,600 before the fall. [To be scrupulous, I should add "if at all."]

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