Just about everyone these days is following the decline of the ill-fated US dollar, including famed contrarian investor Jim Rogers, who believes that recent pessimism over the buck will lead, counter-intuitively, to a short-term dollar rally. Rogers, chairman of Rogers Holdings, says he has no idea when it will happen but he has increased his dollar holdings over the past few months just in case. “If the rally doesn’t come, and the dollar just keeps going down, then I’ll just have to panic and dump like everybody else,” Rogers told.
Kevin Ferry the co-founder of Cronus Futures Management said the current “hot money” is heading for coffee and avoiding commodities such as oil and gold. Coffee is a good commodity to invest in and is popular among investors since it is “the second largest commodity traded in the world,” beating out steel, Ferry said.
In a presentation earlier this week, Paulson said he still finds the equity markets very compelling and currently has no short positions in the credit markets – where he made a killing shorting sub-prime in 2008. Paulson said, “Today our net long exposure is perhaps the highest it has ever been in our portfolio. We still find a lot of compelling long investments on the equity side.”