Jim Rogers Blog

Wednesday, July 1, 2015

Capitalism vs Government intervention results



They [Fed] should stop buying bonds. They should let interest rates and the market find its own level. It might mean some bankruptcies. 

In Scandinavia in the early 1990's, they had a problem. They let businesses go bankrupt, and there was terrible pain for a year or two, but Scandinavia reorganized and become one of the best parts of the world economy. 

On the other hand, Japan refused to let anyone go bankrupt, and they lost a decade or so because of artificial stimulation. It doesn’t work. It has never worked. The only thing that works is when people fail, go bankrupt, and start over. 


VIA MARKETWATCH



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.

Monday, June 29, 2015

People who invested recklessly being bailed out

What is happening right now is a historical anomaly. Never in the thousands of years of recorded history have we had interest rates at zero or negative. We are destroying the people who save and invest for the future. They are being wiped out at the expense of the people who bought four or five houses with no money down and no job. We are destroying the people that all societies throughout history have needed the most.

When you destroy the investing and saving group, your society, economy, and country has problems. That is what we have been doing. Think of all those people who were saving for the future. They look like fools now, and feel like fools. Their friends who borrowed money are being saved at their expense. 


VIA Marketwatch

Monday, June 22, 2015

Jim Rogers on China property City vs Rural

I would not buy Chinese property unless it was in the countryside. There are probably good places to buy houses in the countryside, but house prices in most of the cities are very expensive, and most of the cities have too many buildings. When I traveled around China, I also saw many empty houses in cities.

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.

Thursday, June 18, 2015

Jim Rogers continues to like Chinese Yuan currency


I have bought yuan for many years and I have never sold any of it. I will continue to buy and hold yuan. The yuan may depreciate and I hope it will as often happens in markets, because if the price goes down I can buy more of it.


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.

Wednesday, June 17, 2015

China is the country to be in the 21st century

I don't pay much attention to short-term economic growth data in China, and it would not be easy to forecast the country's economic growth for the whole of 2015.

The world economy may experience some setbacks in the future, and that would affect China because the country is more international now. With its cooling economy, China needs to pay more attention to avoid building up debt. In the past few years China has built up more debt than it ever had in the previous 30 years.

There have already been some companies that have defaulted on their debts, and there may be more. But if China comes out of this cooling period, it is likely to see rapid growth in its economy.

Britain was dominant in the 19th century, and then it was replaced by the US in the 20th century. In my view, the 21st century will belong to China.

It's likely that more and more Chinese consumers will spend their money overseas as they become richer and some Chinese firms will speed up their process of overseas investment. The increased purchasing power from China will continue to change the world in the future, similar to the way that Britain and the US did when they were rising.

I encourage my daughters to speak Chinese and learn about Asia, because I want them to prepare for the 21st century. That is why I have moved my whole family from the US to live in Asia.

India may never become an economy as important or as strong as China. As for Japan, under its current economic policy the country has been printing money, but a depreciating currency will not support the sound development of the real economy in the long run.


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.

Monday, June 15, 2015

China producing high quality products

In the 21st century, buying goods made in China will be almost unavoidable, as the country has become the major manufacturing force in the world.

Even 20 years ago, I had a refrigerator produced by Chinese home appliance maker Haier Group. I have never bought a Chinese car but I suspect eventually everybody will have Chinese cars. During my second trip around the world in 1999, I was driving across China and we had Changyu wine (Chinese wine). I was surprised by how good it was.

Some people have the impression that products made in China are cheap but of poor quality. In the 1950's, that was what people said about products made in Japan. Then people changed their mind about products made in Japan and realized they were of very high quality.

It's good that China has realized that the only way to nurture the market is to make high-quality goods. 




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.