Hoarding cash
Rogers knows a thing or two about navigating 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%.
During the interview, Rogers mentioned that despite holding a substantial amount of cash, he’s in no hurry to put it to work.
“I am not spending my cash yet. I would like to have more cash because, to repeat, when the next market collapse comes, it’s going to be the worst in my lifetime,” he emphasized.
Rogers isn’t the only well-respected investor keeping cash on hand.
Warren Buffett’s Berkshire Hathaway is also holding a significant cash reserve. According to Berkshire’s latest quarterly report, the company’s cash and cash equivalents reached $224.2 billion as of June 30, 2024 — up from $121.8 billion in 2023.
But there may be some areas within the market that still offer profit potential today.
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Learn More‘If I were buying today…’
To be fair, Buffett’s accumulation of cash doesn’t necessarily signal a bearish outlook. But in Rogers’ case, his strategy is rooted in his concerns about the sustainability of the prolonged bull market.
“Things have been so good everywhere for so long. Always in history, when everybody’s making a lot of money, it’s a time to worry, so I’m worried,” Rogers explained.
Despite his cautious stance, Rogers pointed out a few potential opportunities in the market.
“If I were buying today — and I’m not — I would probably buy silver or agriculture,” he revealed.
Precious metals like gold and silver are often considered hedges against inflation, as they can’t be printed by central banks like fiat currency. In 2024, gold has garnered significant attention from investors, driving its price to new highs.
Silver, while also experiencing a rally this year, remains well below its historical peak. Rogers highlighted this disparity as a key reason for his interest in the metal.
“Silver is down 40% or 50% from its all-time high… Gold has been making all-time highs,” he said. “Silver is down — it’s hard to find things that are down.”
Rogers’ interest in agriculture follows a similar logic.
“I’ve been optimistic about agriculture because agriculture has been depressed,” he noted.
Although agriculture doesn’t often make headlines in financial media, it plays a vital role in the global economy. After all, food is a necessity, and investing in agriculture could be a way to capitalize on a sector that remains essential throughout economic cycles.
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