Jim Rogers: Market Rally and Commodities

The rally is very powerful and looks as though its the kind of thing that might go on for a while. I am not participating, I think we may have hit a bottom but not the bottom. I am sitting and watching.

I have been buying more commodities because if we have hit bottom commodities are going to lead the way out of it, and if we haven`t, commodities are not going to go down that much.

I have been buying agriculture products, if you look to what has happened since November, December, commodities have done the best, some of them are up 20 to 25%. The only place I know where the fundamentals are getting better continues to be commodities. Farmers cannot get loans for fertilizer. Nobody is going to open a new mine. So the supply of all commodities continues to go down. The fundamentals for General Motors are not improving, the fundamentals for Citigroup are not improving but they are improving for commodities.