Time for investors to take stock if volcano erupts
Renowned investor Jim Rogers has pointed to the potential for agricultural commodities to outperform in the event of a major eruption in Iceland.
He rose to fame after co-founding the Quantum Fund with George Soros, which returned 4,200% over the 1970s.
He said “If Katla blows, we don’t know what will happen. If it did explode, that will be bad for world economies and at that point, probably agriculture will be the best thing to buy.”
A Katla volcanic eruption in Iceland would disrupt air traffic between Europe and North America even more seriously than the latest eruption of a neighbouring volcano.
According to Rogers, “All stocks and commodities would go down, except agriculture which will probably go through the roof.”
He said another major concern for financial markets was the potential for one or more countries to go bankrupt. “If suddenly the UK goes bankrupt – everything is going to go down. Whether things get better or don’t get better, I’d rather be in commodities than in stocks,” Rogers said.
