Investors should minimise their exposure to long-term bonds as governments worldwide will continue to issue sovereign debt, according to former hedge fund manager and high-profile investor Jim Rogers.
"If you look at bonds, bonds should be sold. There is going to be a gigantic issuance of bonds by governments around the world," Rogers said in a presentation held by ETF Securities yesterday.
"If any of you are bond portfolio managers, I urge you to get another job."
Rogers is well-known for his positive stance on commodities, and he still remains confident it is the only place in the global economy where investors are ensured to make money.
"Unless you're a good trader and can jump around in currencies, stocks and bonds, then the best place to be is commodities," he said.
"Commodities are in a secular bull market, a bull market that started about 10 years ago. The fundamentals continue to improve for commodities worldwide."
Rogers argues that while supply of various commodities, including precious metals, oil and natural gas, is continuing to decrease due to a lack of new discoveries, the demand for these products is only going up.
This effect will be magnified by the effects of an anticipated increase of inflation.
"When people worry about inflation, or worry about paper money, they'll get their money into real assets, whether it is silver, or cotton, or natural gas," he said.
