I like Jim Rogers, Nouriel Roubini is ok. Rogers has better instincts regarding global markets than Roubini who is an academic; yes he made some good calls, but Rogers that has made some better calls, particularly gold and equity rebounds.
This slight slug fest originates around the weakening US dollar and it's effect on commodity markets. As Roubini refers to commodities as bubble markets, he also refers to the current stock rallies as a bubble. Rogers dismisses this and says that markets (both commodities and equities) have yet to reach previous highs, therefore are not in bubble ranges (say compared to the equity markets in 2008 - before the collpase). In a sense Rogers is right, yes markets are bubbly, but not completely in bubble territory and rise in commodities is responding to a weak USD. So loose liquidity is driving markets higher, including gold. If dollar weakness persists in 2010, yes gold will go higher. As discussed in Gold price breakout on a 'mini' crisis 2009 (update 3) - or just overbought?, supports are now in higher prices ranges and trading ranges are narrowing. If the Federal Reserve starts to tighten interest rates they will be hit with the long term bond losses (value collapses). Again Rogers is correct the only bubble so far is goverment bonds. That's our pending problem. Not so much equities or even gold going higher as the declining US dollar is not critical yet.
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