Tuesday, February 10, 2009

Government Bonds May Be Last Bubble: Jim Rogers

CNBC Interview with Jim Rogers


Investors will have to short government bonds at some point despite their current attraction, as the amount of debt issued is "staggering" and inflation risks are down the road, Jim Rogers, CEO of Jim Rogers Holdings, told CNBC Tuesday.
The low rates policy promoted by central banks is likely to pop a fresh bubble in government bonds sometime in the future, Rogers said.

"I was short long-term government bonds in the US, I had to cover a little loss because the head of the central bank said he was going to buy US long-term bonds, and he's got more money than I do," he told "Squawk Box Europe."
"I plan to sell short US government long bonds sometime in the foreseeable future… I don't know when, whether it's this quarter or this year," Rogers said.
If long-term interest rates continue to go down, then "you've got to sell short government bonds, because the numbers are just staggering" when it comes to the amount of debt issued by the US and the UK, he explained.
"Government bonds may be the last bubble that is developing. I'm not short government bonds right now," Rogers said.

No comments: