With the S&P 500 down 21% year-to-date, the stock situation is bleak – but according to legendary investor Jim Rogers, this is just the beginning.
“This has to be the worst bear market in my lifetime, which means it will fall a lot and it will last a long time,” the 79-year-old told ET Now earlier this month.
Rogers 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 devastating bear market. From then until 1980, the portfolio returned 4,200%, while the S&P 500 rose 47%.
If you’re looking for a safe haven, Rogers says “there is no such thing as a safe haven” in the investment world. Still, the multimillionaire points to two assets that can help you withstand the coming onslaught.
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Precious metals are a popular choice for investors in dark times, and Rogers is a longtime advocate.
“Silver is probably less dangerous than other things. Gold is probably less dangerous, ”he says.
Gold and silver cannot be printed out of thin air as fiat money, so they can help investors hedge against inflation. At the same time, their prices tend to remain robust in a crisis.
But that does not mean they are collision proof.
“I do not buy them now, because in a big collapse, everything goes down. But I will probably buy more silver when it falls some more. “
Silver is widely used in the production of solar panels and is a critical component in many vehicles’ electrical control units. Rising industrial demand, in addition to its usefulness as a hedge, makes silver in particular a compelling asset for investors.
You can buy silver coins and rods directly at your local gold bullion store. You can also invest in silver ETFs such as the iShares Silver Trust (SLV).
Meanwhile, silver miners like Wheaton Precious Metals (WPM), Pan American Silver (PAAS) and Coeur Mining (CDE) are also solidly positioned for a silver price boom.
You do not need an MBA to see the attractiveness of agriculture in a bear market: No matter how big the next crash is, no one is crossing “food” out of their budget.
Rogers sees agriculture as a potential refuge in the coming collapse.
“Silver and agriculture are probably the least dangerous things in the next two to three years,” he says.
For a convenient way to gain broad exposure to the agricultural sector, check out the Invesco DB Agriculture Fund (DBA). It tracks an index consisting of futures contracts on some of the most traded agricultural commodities – including corn, soybeans and sugar. The fund has increased 9% in 2022.
You can also use ETFs to leverage individual agricultural commodities. The Teucrium Wheat Fund (WEAT) and the Teucrium Corn Fund (CORN) have achieved 38% and 27% respectively in 2022.
Rogers also likes the idea of investing in agricultural land himself.
“Unless we stop wearing clothes and eating food, agriculture will get better. If you really, really love it, then go out there and get yourself a farm and you will be very, very, very rich, ”he told financial advisory firm Wealthion last year.
Some real estate investment associations specialize in owning farmland, such as Gladstone Land (LAND) and Farmland Partners (FPI).
Meanwhile, new investment services allow you to invest in farmland by taking a stake in a farm of your choice. You will earn cash income from leasing fees and crop sales – and any long-term appreciation on top of that.
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