Jim Rogers was interviewed in IndiaTimes about his outlook on stock markets, commodities and countries to invest or avoid.

On stocks, Rogers says he won’t short markets because even poor stock markets can go to unheard of heights when price in currencies that are becoming more worthless. He feels a currency crisis is within the near term horizon (a year or two) and likely will come from someplace we aren’t paying attention to at the time.

The last stocks Jim Roger bought were Chinese stocks last fall when there were exceptional values there.

As for India itself, Rogers takes a wait and see approach to the p0liticians promising changes – he’s been hearing their promises for 40 years now. He prefers Sri Lanka now that their 26 year war appears to be over.

Water resource stocks he feels are the way to invest in both India and China as both countries have horrible water problem.

Regarding currencies, even though a U.S. Citizen (living in Singapore), Rogers has almost no U.S. dollars in his portfolio.

I agree with the commodity guru when he says that the Central Banks will not be able to “mop up the excess liquidity” when the time comes to avoid rampant inflation and currency devaluation. Trying to do so would squash any economic recovery and inflict too much pain on a populace unwilling to bear it.

The place to be, Rogers has said over and over, is farming. With more and more land turning to the production of crude oil alternatives, investing in food and cotton is likely to be a more profitable play.

And since farmers cannot get loans for seed and fertilizer, any spell of bad weather could result in terrible food shortages.

Unfortunately, to be a farmer in my neck of the woods (MidWest), you need the capital backing to absorb the purchase price of land at about $6000 per acre.

Investing Jim Rogers way isn’t necessarily easy. He doesn’t give us individual stock or ETF picks.

What I do is follow investment newsletters that seem to share the same philosophy as Jim Rogers and follow their investment advice.

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