Listen to what Rogers is saying about commodities (as a hedge against long positions in equities) also listen to what he is saying about shorts:
Will commodity prices continue to advance? Yes, if the conditions supporting higher commodity prices hold. Below are four charts that, taken as a whole, provide for conditions supporting higher commodity prices. We won’t get involved in the details of why we use these four indicators, we will leave that to your imagination. We don’t know what the future holds but we do know a bit about the behavior of markets. We know that markets move in trends because of underlying themes. We also know that once in place these “themes” last for considerable lengths of time (often years). Next – what defines a trend……..well we define it as positive rate of change over a rolling 60 day (3 month) period. Until the indicators below turn negative (as a whole) we will remain bullish on commodities. We don’t know how long this will be.
Let the good times roll!
