Hot Commodities by Jim Rogers, 0470510765, Lowest Book Price Finder

Customer Reviews:

Excellent advice for the beginner

A study of the history of supply and demand of the commodities is essential reading for nayone wanting to trade. But don't forget the basics that apply to ALL trading, namely CUT YOUR LOSSES! Obviously commodities is more about supply and demand than stocks and bonds, so when the spot price is higher than the futures price, current demand is greater than supply and price will rise. Great book which should be part of every traders library.

The next big thing is, things.

THIS BOOK PUTS FORWARD A STRONG CASE FOR DIVERSIFICATION AWAY FROM STOCKS AND INTO COMMODITIES. GIVEN THE CHANGES IN THE SUPPLY AND DEMAND DYNAMIC DUE TO UNDERINVESTMENT AND THE RISE OF CHINA AND TO A LESSER EXTENT INDIA, WE ARE IN THE MIDST OF A COMMODITIES BULL RUN WHICH COULD CARRY ON WELL INTO THE NEXT DECADE. THE AUTHOR ALSO POINTS OUT THAT IN THE PAST, THE COMMODITIES MARKET HAS HAD AN INVERSE RELATIONSHIP WITH THE STOCKMARKET. RECOMMENDED.

This book gives credit to a well deserving underdog!

Commodities have always been playing second, third or fourth fiddle to the other 'major' financial asset classes. Jim Rogers uses his experience to give readers an overview of commodities, and why it is a viable alternative to stocks in certain periods of the business cycles.

He also emphasises the importance of identifying important supply and demand fundamentals that ultimately determine the price of commodities at the end of the day, regardless of the bull-market hysteria which often props up prices in the final stages of the bull cycle.

Interestingly, he also quotes a study from Yale university by some professors who have found that commodities can be less risky than stocks and have even outperformed stocks since the mid twentieth century, which can be controversial amid the existence of other studies that are around.

However, it still makes a good read, and all investors will gain in terms of knowledge by a deeper understanding of commodities and the way they shape our lives.

Packed with Knowledge!

Jim Rogers' book is surprisingly similar in tone to those breathless radio ads inviting you to "invest now" in petroleum futures because bad weather in the northeast is sure to cause a shortage of heating oil. But, Rogers backs up his enthusiasm - dare one say exuberance? - with facts. His record as co-founder of the Quantum Fund speaks for itself. Of course, it doesn't take an advanced degree to figure out that as China continues its inevitable lumbering jog toward economic hegemony, its appetite for commodities will become insatiable. Hearing it from someone with Rogers' track record, however, gives it immediacy. Rogers seems to be talking to the general investing public, which may explain the awkward chapters that detour through commodity investment basics, but he heads for more advanced territory soon enough. As the founder of the "The Rogers Raw Materials Index Fund," he would probably relish a run on commodities. That said, Rogers makes a convincing case, and we strongly recommend his book to those looking to diversify into commodities.

Coffee Futures Reached Five Year Highs and Oil Spiked Today

We are accustomed to reading headlines like the above in The Wall Street Journal and in the business sections of other publications. If you are like most people, you use the information to get a general sense of what future inflation might be . . . and go back to buying and selling stocks and bonds.

Jim Rogers has a different suggestion for you. Learn enough about the commodity markets so that you can consider whether they offer an appropriate alternative for investing some of your funds. His book, Hot Commodities, is designed to help you achieve that goal.

I found Hot Commodities to be an easy-to-understand introduction to the subject that will appeal most to those who know nothing. If you were alive during the commodity-driven inflation of the 1970s and 1980s, you will find this book to be a little too simple for you. But you will probably enjoy the book, nevertheless. Mr. Rogers has a straightforward, humble approach to his writing that will appeal to most.

Some may avoid this book because they don't want to use the tremendous margin that is available with commodities. That's a mistake. Mr. Rogers is suggesting a plain vanilla index-fund approach to owning a portfolio of commodities over the long term with no trading and no financial leverage. His point: During a commodity up-cycle, many commodities will rise by ten-fold. Hitting most of the rise over a 10-18 year period will provide returns that exceed what bonds and stocks usually provide.

In addition, he shows that commodities tend to be countercyclical to stock and bond returns so commodities can be a useful diversification for part of a portfolio. Interestingly, commodities have also been less volatile than stocks in the last 25 years or so.

Mr. Rogers also gives you basic information in case you want to consider more adventuresome versions of what he recommends (don't do it!).

The most interesting parts of the book are the ones where he explores the pivotal role that China and Brazil play in creating a commodities boom. He looks at economic growth in developing countries, oil, gold, lead, sugar and coffee in a little detail to give you a flavor of how to analyze supply and demand fundamentals for a given commodity.

Personally, I would have found the book to be a lot more valuable if it had had more detailed analysis in it . . . and suggestions for how to do your own homework.

But that's okay. I still learned from the book, and intend to consider doing some commodity index fund investing.

I recommend this book to anyone who wants to use index fund investing to beat the pros.

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