Wednesday, May 30, 2018

Jim Rogers is long term bullish on China

Setbacks in life and in investing can and do happen. Jim Rogers talks about what could be some potentially good long term investments even though there is the possibility of corrections in those markets.

"If you sold U.S. stocks in 1916, you’d have looked smart for a year or two. But over the past century, of course, the U.S. has been the big story. And in coming decades, China will continue to emerge. It’s going to be the big story. So with that kind of time horizon I’d be looking to buy shares of Chinese companies, and looking past the challenges that China is facing now and will continue to face in coming months.

Five hundred years ago, the Spanish and the Portuguese started sailing around the world, changed geography. Two hundred years ago, we found the railroad, changed geography. In America, there’s a city called Chicago, everybody’s heard of Chicago. But Chicago is only there because of the railroad. Denver, a big city in Colorado, is only there because of the railroad. The railroad, for example, totally changed world geography.

The Chinese are doing the same now with One Belt One Road. Some people are going to make vast fortunes. If you’re left out, you’re going to disappear and nobody will ever hear of you.

I live in Singapore. And Singapore’s going to have problems because much of what will be transported is going to go around Singapore. Part of Singapore’s key to success in the past 50 years is its port. As Asia started booming, this port became the most important port in the world.

Well, now it’s not going to be the most important port in the world. So some people are going to suffer, some people are going to boom. Kazakhstan, Central China, many places are going to actually boom now because of this. Figure out where and you’ll get rich. You get the wrong places, nobody will ever hear of you. There are cities in America that nobody ever heard of because they disappeared – because the railroad went the other way."