Thursday, August 13, 2015

Japan could be ruined in the longer term

I am buying China, Japan, and Russia, all of which are Asian markets.

One reason I am not buying the U.S. is because the U.S. is making all-time highs. I prefer not to buy things making all-time highs. Japan is down 50% from its high, and Japanese Prime Minister Shinzo Abe said he will print unlimited amounts of money. He is doing things to make the market go up. He has also passed legislation to give tax incentives to invest in the stock market. He has persuaded the huge pension funds to buy more shares. Abe has done a lot of things that are good for stocks and the investment community.

I am not buying the currency because he is running up huge debts and printing money, which is debasing the currency. In the short term, it’s good for investors. In the long term, it will ruin Japan. The population is declining, debt is going through the roof, and currencies are being destroyed. This is not good for Japan.

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.