Jim Rogers Video - Forced Selling and the Crisis

The Following interview is well worth watching, and provides some comfort following the huge losses seen across the globe (& more specifically in my portfolio).

It continues Jim Rogers theme of commodity investing (as mentioned here in my post discussing investment in non growth environment)

The main points made are:

• That the forced selling is driving the prices of ’stuff’ down to extreme levels, as shown by some of my stocks NPE and EO. which are now trading near cash.
• In commodities hat this will have the effect of stopping investment.  This means less supply in the future which will mean that the next spike up will be even worse.
• He describes the recent rally in the dollar as a short squeeze in the dollar, but that it won’t last.
• Talking about the great depression, Jim mentions how commodities were one of the best places to be and they came out first and he expects them to do so again.
• Jim also talks how he expects stocks to under perform and how the imbalances in the system will take years to work through and that commodities are one of the few areas where the fundamentals are still there.

Makes me think about transferring some of my losing positions into E&P sector….

Update: Part 2 of above video