With the S&P 500 down 21% year-on-year, the stock situation is bleak – but according to legendary investor Jim Rogers, this is just the beginning.
“This must be the worst bear market in my life, 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 one or two things 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 grew by 47%.
If you’re looking for a safe haven, Rogers says, “there is no such thing as a safe haven” in the investment world. However, the multimillionaire points out two advantages that could help you withstand the oncoming attack.
Precious metals are a good choice for investors in dark times, and Rogers is a longtime supporter.
“Silver is probably less dangerous than other things. “Gold is probably less dangerous,” he said.
Gold and silver can not be printed from the air like brand money, so they can help investors hedge against inflation. At the same time, their prices tend to remain resilient to a crisis.
But that does not mean they are resistant to conflict.
“I do not buy them now, because in a big collapse everything falls down. “But I’ll probably buy more silver when it falls a little longer.”
Silver is widely used in the manufacture of solar panels and is a critical component in many vehicle electrical control units. Growing industrial demand, in addition to its usefulness as hedging, makes silver a particularly compelling advantage for investors.
You can buy silver coins and bars directly at your local gold shop. You can also invest in silver ETFs such as iShares Silver Trust (SLV).
Meanwhile, silver miners such as Wheaton Precious Metals (WPM), Pan American Silver (PAAS) and Coeur Mining (CDE) are also in a stable position for a silver price explosion.
You do not need an MBA to see the impact of agriculture on a bear market: No matter how big the next crash is, no one is deleting “food” from their budget.
Rogers sees agriculture as a possible refuge in the impending collapse.
“Silver and agriculture are probably the least dangerous things in the next two or three years,” he says.
For a convenient way to get extensive agricultural exposure, see the Invesco DB Agriculture Fund (DBA). It tracks an index of futures on some of the most widely traded agricultural products – including corn, soybeans and sugar. The fund increased by 9% in 2022.
You can also use ETFs to utilize individual agricultural products. The Teucrium Wheat Fund (WEAT) and the Teucrium Corn Fund (CORN) recorded gains of 38% and 27%, respectively, in 2022.
Rogers also likes the idea of investing in farmland itself.
“If we do not stop wearing clothes and eating food, agriculture will improve. “If you really, really love it, go out there and build a farm for yourself and you will become very, very, very rich,” he told financial consulting firm Wealthion late last year.
Some real estate investment trusts specialize in farmland ownership, 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 valuation in addition.
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This article provides information only and should not be construed as advice. It is provided without any guarantee.