Monday, August 11, 2008

'Preventing foreign inflows, an act of ‘insanity’'

Investors should consider fixed income assets: Rogers

Hapless investors who have had enough of disappointments from stocks this year, could look at other opportunities. Short-term fixed income could be ‘one option’, says American investor and financial commentator Mr Jim Rogers.
“I am selling short longer-term fixed income assets in various parts of the world. Long rates will be going higher in most of the world,” he adds. “Commodities remain the ‘other alternative’.”
With Asian governments such as like India and China already beginning initiatives to douse the inflation fire, short-term bond yields may not drop further, making them relatively safe investments.
“The Chinese are rightfully trying to stop it as are several other governments. Once inflation takes hold, it is very difficult and expensive to break it,” Mr Rogers told Business Line from Singapore over the email.

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