Jim Rogers warns of the ‘worst bear market’ of his life – these are the ‘least dangerous’ assets to own today

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Jim Rogers warns of the ‘worst bear market’ of his life – these are the ‘least dangerous’ assets to own today

With the S&P 500 down 21% year-to-date, the picture for stocks is pretty grim, but according to legendary investor Jim Rogers, this is just the beginning.

“It has to be the worst bear market in my life, which means it will go down a lot and it will last a long time,” the 79-year-old told ET Now earlier this month.

Rogers knows a thing or two about making money in turbulent times. He co-founded the Quantum Fund with George Soros in 1973, in the midst of a devastating bear market. From then until 1980, the portfolio returned 4,200%, while the S&P 500 rose 47%.

If you’re looking for a safe haven, Rogers says “there’s no such thing as security” in the investment world. Still, the multi-millionaire points to two strengths that could help you weather the onslaught ahead.

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Silver

Precious metals are a go-to choice for investors in dark times, and Rogers has been a longtime advocate.

“Silver is probably less dangerous than other things. Gold is probably less dangerous,” he says.

Gold and silver cannot be printed from scratch like fiat currency, so they can help investors hedge against inflation. At the same time, their prices tend to remain resilient in times of crisis.

But that doesn’t mean they’re shockproof.

“I don’t buy them now, because in a big meltdown, everything falls apart. But I’ll probably buy more silver when it drops a bit more.

Silver is widely used in the production of solar panels and is an essential component in the electrical control units of many vehicles. Growing industrial demand, in addition to its usefulness as a hedge, makes silver in particular an attractive asset for investors.

You can buy silver coins and bars directly from your local bullion store. You can also invest in silver ETFs like the iShares Silver Trust (SLV).

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Meanwhile, silver miners such as Wheaton Precious Metals (WPM), Pan American Silver (PAAS) and Coeur Mining (CDE) are also solidly positioned for a surge in silver prices.

Agriculture

You don’t need an MBA to see the appeal of farming in a bear market: no matter how big the next crash, no one is excluding “food” from their budget.

Rogers sees agriculture as a potential refuge in the coming collapse.

“Money and farming are probably the least dangerous things in the next two or three years,” he says.

For a convenient way to gain broad exposure to the agricultural sector, check out the Invesco DB Agriculture Fund (DBA). It tracks an index made up of futures on some of the most traded agricultural commodities, including corn, soybeans and sugar. The fund is up 9% in 2022.

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You can also use ETFs to trade individual agricultural commodities. The Teucrium Wheat Fund (WEAT) and Teucrium Corn Fund (CORN) gained 38% and 27% respectively in 2022.

Rogers also likes the idea of ​​investing in the farmland itself.

“Unless we stop wearing clothes and eating, agriculture will improve. If you really, really like it, go out there and buy yourself a farm and you’ll get very, very, very rich,” he told financial advisory firm Wealthion late last year. .

Some real estate investment trusts specialize in owning farmland, such as Gladstone Land (LAND) and Farmland Partners (REIT).

At the same time, new investment services allow you to invest in farmland by taking a stake in a farm of your choice. You’ll earn cash income from rental fees and crop sales – and any long-term appreciation on top of that.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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