Jim Rogers: New leg down for investment banks

Discussion in 'Wall St. News' started by Daal, Feb 1, 2008.

  1. Daal


  2. S2007S


    Great article, thanks...
  3. tetuan01


    Thanks, a great article.
  4. jsmooth


    Great article....I love the fact that Jim loves to trash the US economy and the US Dollar and he’s such a contrarian to public opinion. I just read his interview in "Inside the House of Money"...I found this to be hilarious (p.221)

    <I>My baby girl is 18 months old. My baby girl has a bank account. She does not have an American bank account; she has a Swiss bank account because she knows the dollar's not going to do her any good when shes 25.</I>

    <B>Shes knows the dollar is a bad investment at 18 months old?</B>

    <I>I hope she does. Shes's got to take care of me someday so I hope she's getting it right. </I>


    One a side note (I'm not sure if this had already been posted or not), anyone see the article on Julian Robertson last week:


    <I>Appropriately enough, the biggest bet that Robertson has in his own portfolio at the moment came, he says, from a former Tiger who he had given some ideas on subprime shorts. Robertson has shared the strategy with the seed funds and some of them have followed him into it - with great success so far. <B>Here's the idea: In the fall, Robertson invested in a derivative called a "curve steepener" that allows him to be long the price of two-year Treasury and short the price of the ten-year Treasury - betting that the difference, or curve, in the yield between the two will increase. </B>

    <B>The investment reflects a negative outlook on the prospects for the U.S. economy that has been building in Robertson for years. He believes that the Federal Reserve will continue to flood the economy with money, weakening the currency and ultimately causing the Japanese and Chinese central banks to stop purchasing Treasuries, which will drive the price of 10-year bonds down. It's a macroeconomic hedging strategy that has already paid off handsomely.</B>

    So far in 2008, the difference in the between the two bonds has already increased from 97 to 138 basis points. "I've made a big bet on it," he says. "I really think I'm going to make 20 or 30 times on my money." Considering the momentum he has, it wouldn't be a surprise.</I>
  5. Can a retail guy like me do this? And, if so, how?
  6. Daal


    you can buy stocks that benefit from a steep yield curve. NLY and MFA, but I think the easy money has been made, I dont think the returns will be all that huge from now on
  7. Daal


    retarded is buying the 2year at these levels and think your going to make any money
  8. dozu888


    what the F is wrong with the rogers dude. the guy must be very short and trying to talk the market down.
  9. hsmc1970


    He has been short the Investment banks and Fannie and others for over a Year now.
  10. ess1096


    The Rogers "dude" is rarely wrong.
    Often early.........but rarely wrong.
    #10     Feb 2, 2008