Fri 26 Feb 2010
Jim Rogers says Pound is in Trouble but will not Collapse in the Next Weeks, Euro will Possibly be Strong
Posted by Jon under Money & People , ForexJim Rogers on the pound late February 2010
Jim Rogers says the he does not think there will be an imminent collapse in the pound the next few weeks. However he thinks that the pound has its weaknesses along with other paper currencies.
He has to come on record since an investment seminar has been spreading views that they claim are his, but Jim Rogers disagrees he has said. The views they have been spreading are basically too strong worded.
However what Jim Rogers says:
“I am on record as saying the U.K. has serious problems over the next few years and the pound sterling has serious problems over the next few years as well.”
“I would say the same about a lot of currencies. All paper money is suspect these days.”
“I do not think the pound sterling is going to collapse within the next few weeks. I’m on record as saying the U.K. has serious problems, serious debt problems, and the pound sterling has got problems, too.”
Thinks the Euro will be relatively strong despite Greece debt problems
The pound has fallen sharply against major currencies in recent months. Worries over large fiscal debts in the U.K. At the same time, the fiscal crisis in Greece has weighed sharply on the euro amid fears problems there could spread to other members of the common currency.
Rogers said he has no position in the pound, long or short, and that he holds no U.K. assets.
He said he is long the euro, however.
“I think the euro probably will survive this bout with the Greeks,” Rogers said.
He argues that European leaders will likely paper over Greece’s problems, which will provide short-term support to the common currency. Alternatively “Greece will go bankrupt.” If it does, according to Rogers, the euro should rally because investors will see that Europeans are serious about enforcing fiscal discipline on member states.
“Right now there are huge short positions in the euro,” Rogers said. “I like to see a lot of shorts. It’s always good to be on the opposite side of a popular trade.”
Regarding a separate forecast released by UBS earlier this week calling for a possible fall in the pound to “$1.05 and below,” Rogers said he wouldn’t be surprised if sterling fell that far, “but whether that happens this year or this decade, I don’t have a clue.”