Monday, March 27, 2017

US Dollar Bubble vs Gold bubble

I expect more turmoil in the markets and when there's turmoil, people look for safe haven. Now, many people think the U.S. dollar is a safe heaven. It's not. It's not, .... because, you know, the U.S. is largest debtor nation in the history world and getting worse all the time, but people still think it is. So that's why I own a lot of dollars. The dollar's gonna go higher. It may even turn into a bubble before this over, if things get as bad as I think they will. At which point, I hope I'm smart enough to sell my U.S. dollars. I don't know, maybe if I'm right about gold, you know, the dollar will go higher. It'll turn into a bubble, I'll sell my U.S. dollars and buy gold under a thousand. See how easy it is to get rich? Just sit here and talk about it on the internet and you can get rich. So that's what I expect to happen.

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, March 23, 2017

EU breakup could cause a lot of chaos in the markets

If the European Union starts breaking up or the Euro starts breaking up, that's going to throw a spanner in a lot of people's works because nobody's really sort of planned on that. Most of the bonds, the Euro bonds, none of them, very few of them now have any provision for what happens if there is no Euro. I mean Italy owns several billion dollars’ worth of bonds. Suppose Italy pulls out of the Euro and they suddenly say OK we're going to pay you back in Lira, well that's going to confuse a lot of people and cause a lot more turmoil. 

You have the same sorts of movements in Asia not nearly as powerful or as vocal yet but you have the same sorts-- in the United States there's a movement now for California to withdraw from the U.S. and by the way in the U.S. a lot of people would like to see California leave the U.S. So it may work both ways.

So when you start having bear markets as you I’m sure well know one bad thing happens and another bad thing happens and these things snowball just like in bull markets good news comes out then more good news comes out the next thing you know you're five or six or seven years into a bull market.

Well bear markets do the same thing and so we have a lot of bad news on the horizon. I haven't even gotten to war. I haven't even gotten to trade war or anything like that but you know things do go wrong.

Wednesday, March 22, 2017

Jim Rogers invests in Graphene

In early 2017, Jim Rogers invested in Standard Graphene, a graphene manufacturer based in South Korea. He is also serving as an adviser there.

According to Rogers,
"Scientists say Graphene is going to bring bigger changes to the world than the internet and transistors. It did not exist 15 years ago. It is a miracle material. I have an interest in the company because they seem to be a leader in production of Graphene."

Known as the one-atom-thick material made of carbon atoms, graphene is like a piece of paper but it's stronger than steel and more flexible than rubber.

Tuesday, March 21, 2017

Historically stock market has problems when the Fed raises rates 3 times

Interest rates are gonna go higher all over the world. We have a very artificial situation with interest rates at zero or negative rates in some places that is not normal and it cannot last. It will not last. So whether the market or the Fed or somebody is going to raise interest rates, historically, once the Fed raises interest rates three times, it usually means the stock market is going to have problems. If it doesn't happen after three times, historically, it has always happened after four times. So we will have another interest rate hike, and that maybe the death knell for the stock market and maybe even for the economy. The caveat for that, of course, is never before have interest rates been at zero, so who knows what will happen this time. Maybe it is different this time.

Watch the video above to watch Jim Rogers expectations of the Stock market reaction to the US Federal Reserve rate hikes. Three or Four rate hikes have historically troubled the markets. Could this time be different ?

Other Topics Discussed:
-US Dollar bubble 
-Silver at the moment is cheaper than Gold but at the moment not buying either
-Would not buy the Japanese Yen 
-Bullish on agriculture

Monday, March 20, 2017

Junk bonds will be in trouble when interest rates rise

I know when interest rates start going up again permanently when the bull market really does come to an end and the interest rates, government bonds, interest rates are going to go very, very high ...., very high if I told you how high you would probably hang up now and not listen to me anymore. But in 1981 interest rates – short term interest rates in America – were over 20%, bonds were yielding over – long term bonds – was yielding over 15%.

We've had these long, long bull and bear markets in bonds in the United States and we probably will again. So when interest rates go higher the junk bonds are going to get destroyed both by interest rates and by credit defaults because many of them are in fact junk, the companies are not great creditors and they're going to pay the price.

Thursday, March 16, 2017

Jim Rogers on bonds and junk bonds

As we speak in February of 2017 everybody is bullish on long term U.S. government bonds. I've been around long enough Eric to know that when everybody is on the same side of the boat, I better run to the other side. So I am not shorting government bonds. 

I am shorting junk bonds still if and when the mood changes and people are less skeptical and bonds go down and everybody starts saying, oh, bonds cheated me, she lied to me, they lied then I might be ready to short bonds again because we're certainly in the process of making a top. When that top comes, I don't know.