Tuesday, August 5, 2014
Commodities do well in times of War
Wars always affect all markets. When there is turmoil or fear, people are less likely to take risk. War is not good for anything except commodities. In such a scenario, people prefer to put their money into commodities like lead, copper or wheat because they know those are necessary for war. Likewise for gold. Thus, war is not good for anything except commodities. It is less bad for the people who win the war but in the meantime when there is uncertainty, people are afraid of investing and taking risk.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.