Jim Rogers on investing and ETF's,
"ETF's are very efficient, very easy, very simple. There's no question about that. Therein lies part of the problem, of course, with ETF's is that they are easy, simple, etc and that makes it easy for somebody to say oh, I want to buy Germany, buy the German ETF, and don't even look to see what's in the German ETF or whether it's a good ETF to own. And maybe it should be a terrible ETF, but nobody looks anymore. And when we have the bear market, a lot of people are going to find that, oh my God, I own an ETF and they collapsed. It went down more than anything else. And the reason it will go down more than anything else is because that's what everybody owns."
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
Jim Rogers on Gold and using leverage in trading
"Gold coins are the best way. And you should have physical possession of some gold coins. After that, gold futures are the best way if you want to make money and you're a good trader. Gold futures, that's where you can get the most leverage of any, unless you can find the right gold mine. But there are hundreds of gold mines. If you're smart enough and have the time to find the right two or three gold mines, then, yeah, then you'll make huge amounts of money in the right to - but, you know, there are hundreds of gold mines."
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
The US markets are nearing all time highs with the NASDAQ rising for the third straight week and closing at 6624. Jim Rogers mentions in an interview the similarities between the 1970's and now in 2017.
"I remember in the early 70's, there was something called the Nifty 50, and they were 50 stocks that everybody - JP Morgan bought everyday. Didn't matter. Avon, Xerox, IBM - they were stocks that always were eternal growth stocks. And they just kept - we would short them, and they just kept going up. They never stopped. Polaroid-- that was another. And they just never stopped going up.
Everything else stopped going up but those Nifty 50, which would be something like the FANGs today, or maybe in the late 90's, some of the other kinds of stocks. So this has happened before in market history. They eventually crack, there's no question.
And to today, if you look at the S&P 500, for instance, in the US, I think there are only 40 or 45 stocks that are above their 50-day moving average, to use technician's kind of talk. Everything else is in a downtrend. And yet the market is making all-time highs.
What is that - over 90% of the stocks are in downtrends. 10% are in uptrends, but they're big companies. And since the S&P is capitalization weighted, those 50 stocks, 40 stocks, whatever it is, dragged the average to all-time highs."
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
A lot of investors are now buying ETF's and that could affect the stock market according to Jim Rogers.
"When we have the bear market, a lot of people are going to find that, ‘Oh my God, I own an ETF, and they collapsed. It went down more than anything else.’ And the reason it will go down more than anything else is because that’s what everybody owns.
If somebody can just take the time to focus on the stocks that are not in the ETFs, there must be fabulous opportunities in those stocks because they’re ignored. Some of them have got to be doing very, very well. And nobody’s buying them, because only the ETFs buy stocks."
via marketwatch.com/story/jim-rogers-says-etf-holders-will-get-mauled-by-the-worst-bear-market-ever-2017-09-21
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
Interview with RT news
RT: Washington runs a $350 billion annual trade deficit with Beijing. China also holds more than $1 trillion in US debt. How could the US actually threaten China in such circumstances?
Rogers: Mr. Trump has been saying for over a year, two years, that he was going to start a trade war with China. He was going to put very high tariffs on Chinese goods. In his mind, he wants to do it, he is ready to do it. Some of his advisors are very much in favor of a trade war. It may very well happen. If it happens, it is going to be very bad for the world and it is going to be worse for America than for other people.
RT: How significant is Chinese trade with North Korea?
Rogers: For North Korea, it is extremely important – that is really the only trade partner. They don’t trade with many people except China. But it is not very important for China. China has got gigantic trade all over the world and North Korea is a very small economy.
Rogers: What impact will this have on North Korea itself?
Rogers: If China actually cuts off their oil or something, no, then North Korea cannot do much of anything. North Korea would have troubles surviving if they do something like that. It depends on the sanctions, so far China has not done anything which would destroy North Korea. But they could destroy North Korea if they cut off all trade.
Below is an excerpt from an Interview with RT news
RT: What is the likelihood that the US will go through with and actually impose economic sanctions on China if it does not implement the new sanctions regime against North Korea?
Jim Rogers: Sanctions are sanctions. They could do sanctions which are not very important or don’t do much damage. And then they will have good public relations which says they have sanctions, but it is meaningless. I would suspect if anything, that is what they will start with. If they put sanctions on China in a big way, it brings the whole world economy down. And in the end, it hurts America more than it hurts China because it just forces China and Russia and other countries closer together. Russia and China and other countries are already trying to come up with a new financial system. If America puts sanctions on them, they would have to do it that much faster and in the end America will lose its monopoly on the financial system, which will hurt America more than anybody.
RT: What do you think, is it an empty rhetoric and saber-rattling from Donald Trump ? Do you think this is just mere bluff on the part of the US ?
Jim Rogers: If it uses a nuclear option for sanctions, it will hurt America much more than will hurt North Korea, it will hurt America much more than it will hurt China, Russia and everybody else. It will force the rest of the world to find an alternative to the US financial system. If he does that, it is going to cause a lot of turmoil in the world financial economy and in the end it is going to hurt America more than it is going to hurt anybody else.
I would give you an example, if you look at Russian agriculture right now – America put sanctions on Russian agriculture trying to hurt Russia, but it has helped Russian agriculture. Russian agriculture is booming now. In the end, America has hurt itself more than it has hurt anybody else.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
