Three Sectors to Watch in the Coming Years

One again, my favorite investment analyst is predicting doom and gloom for most Western economies throughout the world. Jim Rogers (George Soros' former partner at the famous Quantum hedge fund) only likes three sectors going forward: China, natural resources, and farming. When it comes to agriculture, his view is that this will be the best industry to be in over the coming decades. He's even saying that investment bankers on Wall Street need to learn how to drive taxis or drive tractors, because they'll be out of work in the future.

In my experience, Rogers knows what he's talking about and he certainly has the track record to back it up. As he freely admits, his calls on the markets are usually correct, but his timing is almost never right. He's often too early in his big market predictions.

He likes sugar and gold. He views oil as a commodity that is quickly running out. Rogers likes some airline stocks in Asia. He likes the water treatment and power generation business in China. He doesn't like the U.S. dollar and he figures that the Federal Reserve should be dismantled as an institution.

I'm forced to agree with Rogers' economic world view on most things and I think that his predictions are really part of a global economic theme that's going back to basics. Currencies, businesses and individuals just can't last for long if they have too much debt and they should be allowed to fail when they do. Jim Rogers is railing against the current spending by most Western countries as taking good money and investing it in proven bad managers. He is ardent about the idea that taxpayers shouldn't be bailing out bad businesses and that governments already have too much debt and shouldn't be creating these debt-financed stimulus packages.

It is fair to say that Rogers isn't politically savvy -- he's a businessman and he's in it for the buck. Clearly, what he's calling for just wouldn't fly at the political level, because politicians just can't tighten their belts when voters are losing their jobs.

Rogers has always been a commodity bull. He trades stocks, bonds, currencies, and indices, but his favorite securities in which to speculate have always been commodities.

I have to say that I'm with him on the agricultural investment theme. I can see it coming as part of a new inflationary era that's going to make the price of food go a lot higher around the world.

Profit Confidential

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