Jim Rogers warns against getting too excited by recent market volatility – here are the shock-resistant assets he likes best right now

The stock market is struggling and many investors are wondering when things will turn green again.

According to legendary investor Jim Rogers, there is hope on the horizon — but perhaps not for long.

“We were very pessimistic because of inflation and other things,” he told ET NOW. “Now it looks like inflation and pessimism are breaking down, but remember, this is probably the last round of recovery.”

The 79-year-old investor knows a thing or two about making money in turbulent times. He co-founded the Quantum Fund with George Soros in 1973 – right in the middle of a ravaging bear market. Between then and 1980, the portfolio returned 4,200%, while the S&P 500 rallied 47%.

So let’s see why Rogers isn’t overly optimistic – and what he likes and doesn’t like in this environment.

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‘Crazy stocks’

Rogers points out that the stock market is very welcoming newcomers. But these new investors did not go the traditional route.

“New investors are coming. They discovered this new thing called the stock market, it’s exciting and one can make money and they’re betting on crazy stocks,” he said, adding that “the Crazy stocks are skyrocketing.”

He also mentioned the euphoria we’ve seen before around special purpose acquisitions (SPACs).

“Everybody bets on SPAC, but SPAC has been around for years. It’s all happened before.”

The lesson here, as Rogers explains, is that “usually towards the end, stocks get crazy.”

Goods in need of rescue?

One of the surest signs of inflation is the rebound in commodity prices that we saw earlier this year.

In fact, commodity prices are often said to be a leading indicator of inflation. As the cost of raw materials increases, that is ultimately reflected in the price of the final product – and consumer prices go up.

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Rogers knows the importance of merchandise. He created the Rogers International Commodity Index in 1998. The index tracking fund – Elements Rogers International Commodity Index-Total Return ETN (RJI) – is up 12% year to date.

He is also holding his own merchandise.

“I own commodities and commodities will certainly do well because supply constraints are developing and central banks will end up printing more money because that is all they know to do, ” he said.

“When we have a recession, they panic and print more money and when there is a lot of money printed, the main thing to own is real assets.”

Read more: Grow your hard earned money without the stock market rocking with these 3 easy alternatives

Long and short

When asked what he would do in the next three years, Rogers’ answer was simple: “First, silver, maybe farming.”

As a precious metal, silver can act as a store of value – it cannot be printed into thin air like fiat money.

Gold has a similar function, of course, but Rogers really likes the gray metal for now.

“Silver is down 70 or 80 percent from its all-time high and gold is 15 percent below its all-time high,” he said. “I would buy both at the right price but for now, I prefer silver to gold.

Agriculture is another favorite area of ​​​​Rogers, and for a good reason: No matter how big the next crash, no one passes “food” outside of their budget.

Investing in agriculture is also becoming more accessible today, even if you don’t know anything about agriculture.

The host also asked Rogers what he would be missing in the next three years.

“What I want to sell would be the US stock market, FAANG, tech stocks in the US,” he said.

Technology stocks have plunged. Meta (formerly known as Facebook), Apple, Amazon, Netflix and Alphabet (formerly known as Google) – which make up FAANG – are all in the red so far.

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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.