Thursday, August 26, 2010

Investment Earworm Contest Winner - Rick

A fairly recent posting of mine challenged readers to identify the speaker of the following comment, together with the asset class he was speaking of.

The comment is, essentially, this:

Commodities wins both the optimistic and the pessimistic scenario."

Rick has correctly identified the speaker and the asset class as being Jim Rogers (the commodity guru) and speaking of the commodity asset class.

What Rogers is saying here, is that if the emerging economies continue their assent - and with it demand for commodities - then commodities prices will continue rising, even if inflation is benign. This is the optimistic scenario.

On the other hand, if inflation starts to run away, due to the extremely high levels of monetary and fiscal stimulus with continuing budgetary deficits (the pessimistic scenario), then the only thing that'll hold their value, are "real" assets, namely commodities and possibly real estate.

Congratulations Rick. You will receive your book choice, The Ultimate Dividend Playbook, shortly.

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