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IPFS News Link • Economy - Economics USA

Why Jim Rogers Is Betting the Farm

• Garry Whit for
You are going to have to get used to the fact that you will have to spend a greater proportion of your income on food in the future – after decades of spending less. That's according to Joakim Helenius, chairman of Trigon Agri, an integrated soft commodities producer in the Ukraine and Russia. He believes that food inflation has only just started – and he is not alone. Commodities perma-bull Jim Rogers thinks people should not buy shares – he says they should buy commodities instead, especially agricultural commodities. "I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop," Rogers told CNBC last month. The price of most commodities has jumped significantly this year, as the global economy slowly stutters toward recovery. Gains in oil and metals prices may not have much further to go but many believe that the situation with food is different. Soybean f

1 Comments in Response to

Comment by Sharon Jarvis
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We're already spending more on food and other items. In the local grocery there was a sale on a bag of sugar for $1.88, which I thought was a good price--until I realized it was for a 4-lb bag. You used to get a 5-lb bag for that price! Same with pet food: a 16-lb bag is the same price that a 20-lb bag used to be. The reason poor people are fat is that hot dogs, American cheese and bacon are always on sale, but fresh fruit and vegetables are out of sight. I can't pay $4 a lb for red peppers because that's not a staple, not can I survive on a bag of apples for the same price. But that $4 will buy me two packages of bacon on sale. No wonder more people are planting gardens.