Monday, December 28, 2015

Jim Rogers on Bloomberg TV India December 2105

Bloomberg TV: We watch crude oil prices very closely. The price went down from $37 a barrel to $35. How much of a downside do you see out there?

JIM: I am not smart enough—$32 a barrel or $30—I don’t know. I am not that good. If there’s a spike down—if something happens like a bankruptcy—it can go to $30 or even lower. But, I would suspect, and I am not any good at market economy and I am the world’s worst trader, I would say $32 at worst as a complicated bottom.


Bloomberg TV: What are you buying? Or, are you just taking a long break from the markets after this kind of prognosis?

JIM: I am not doing much. I am sorting junk bonds as I said. I am sorting US government junk bonds. I might buy some more Chinese shares if they come down some more. I am looking at markets like Kazakhstan, Nigeria, Iran and Russia—markets that are beaten down. These are the markets that are beaten down because of oil (price slump). The remaining is that I am just watching at the moment to see how this plays out. I don’t have to do something every day.


Bloomberg TV: I want to know more of your trades. There is a lot happening across the world. Let’s break it out. Brazil has been rated as junk and it is a big fall in terms of sentiment. What repercussions do these have on the BRICS? What is your take on Brazil?

JIM: I am not investing in Brazil with my money or even your money. Brazil is such a mess and management in Brazil has been such a mess. Until they get a new leader, I am not investing in Brazil.



Bloomberg TV: China is being seen in a structural slowdown. Last time when you said that you had completely exited India and your bet was on China, there was a lot of debate. We are now aware about how China was really the wrong story to bet on. Are you still sticking to that?

JIM: Well, China has been the strongest stock market in the world in 2015. They are not the strongest but certainly one of the strongest. Anybody who says that must be losing money themselves because China has been a very good stock market over the past twelve months—it is up a 15 or 20 per cent. The American stock market is down during that period of time. I am still invested in China. I am still looking for investments.


Bloomberg TV: Many are expecting the Chinese markets or the Chinese economy to slow down structurally. What is your call on the economy because after all the markets are a reflection of which way you see the economy going?

JIM: Well, I expect nearly all economies around the world to slow down. In America, we have had nearly six or seven years without a correction in the economy or the markets. It is long overdue. Normally, we have corrections every four to seven years in the United States. So we are overdue. The debt is going higher and higher. Many of our customers are slowing down—China is slowing down and Japan is in recession. Now, I certainly expect more slowdown to come worldwide. As is said before, I am mainly just watching right now. I have sorted some junk right now—junk bonds in US—and I am mainly just watching.





via http://www.btvin.com/article/read/news/3756/-third-fed-rate-hike-is-where-you-have-to-start-worrying-

Monday, December 21, 2015

Interview with Bloomberg News

Bloomberg News: What are you making of the Fed rate hike and the details of the statement?

JIM: As you know the market interest rates were already going up and the Fed once again just follows the markets. The Fed is just made up of bureaucrats and academics. They don’t know very much. Interest rates are going up. If you follow the Fed, and I guess you have to, the first interest rise from the Fed doesn’t mean very much. The third one is where you have to start worrying. If the Fed raises rates three or four times, then it is usually all over for the stock market. So just keep watching, be worried and be prepared.

Bloomberg News: So we already know that there is going to be about 3-4 rate hikes including this one. What is your prognosis for the global markets if you were to look at the new calendar year 2016?

JIM: I don’t trust the government officials as much as you do. I know they said that. Let us see if it actually happens. If the third interest rate hike comes from the central bank, I will certainly be selling shares worldwide. I have already sold junk bonds in America. I will sell a lot of bond short if that happens.


Bloomberg News: One of the direct correlations of what’s been happening around the news of a Fed lift-off is the fall in commodity prices along with the global slowdown. Talking about commodities—oil and metals—what is the sense that you are getting? How much of a downside do you see?

JIM: Well, I have hedged my gold and silver holdings. I expect gold to go under $1,000 an ounce. What does that mean for silver—$12 or $10 an ounce—I haven’t figured it out. But certainly under a $1,000 for gold at which point I hope I am smart enough to take my hedges off and buy a lot of gold—whether its $950 or $900, I don’t know. Base metals seem to be making a complicated bottom as do oil prices. They have been beaten down. There’s a lot of bad news. They don’t collapse anymore, which usually means we are in the process of making a complicated bottom that I suspect will happen the final bottom in 2016 if it hasn’t already happened.

Monday, December 14, 2015

Jim Rogers interview with RT news




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, December 9, 2015


Kazakhstan has made some dramatic changes [in their legal system]. I was negative on Kazakhstan for decades but last year I noticed that good things were happening. They are making dramatic improvements and I’m getting interested in investing there. Because oil is very low, it seems to be making a bottom, which would put countries like Kazakhstan even better on the radar screen because it has been a disaster. But the country has vast natural resources and they are making dramatic changes from what I can see.

 I haven’t bought anything yet but I’ve instructed my office to find me a broker. That’s just the first step; it doesn’t mean I’ll do anything. But at least I’m interested enough that I am now looking for a broker.


via barrons

Monday, December 7, 2015

Switzerland vs Singapore, Hong Kong and other financial centers

I’m not terribly bullish on Switzerland long term. Their largest, or one of their largest industries is the financial industry, and they have totally botched it over the last few decades. They are no longer competitive. When you have a monopoly or semi-monopoly corrosion occurs from within and people don’t work as hard and prices go up. The Swiss had a monopoly on finance, but they got lazy and their performance was not good and their prices were very high. Singapore, Hong Kong, and many other financial centers are growing partly because the Swiss got complacent as everybody does after long periods of dominance. I don’t see the Swiss financial industry ever coming back to what it was before. This has nothing to do with bank secrecy or the rest of it, that is just another nail in the coffin of the Swiss financial industry. I don’t see it continuing to be a great dynamic economy at all. 

There are some strengths, people like to ski there for instance and people want to live there for many reasons including tax reasons, it is a lower tax place to do business. Anybody who moves to Switzerland now has to do so because he loves it, not because of the advantages that were present 30 – 40 years ago.

Wednesday, December 2, 2015

Jim Rogers might invest in Kazakhstan

When I think about Kazakhstan, the first thing that comes to my mind is of course its steppes. They are so wide. I drove around a few times, and they are very vast. I am very happy to be here. I have been here more than 5 or 6 times. 

I have never invested in Kazakhstan before for many reasons. And one of them is that Kazakhstan used to be closed for other countries. But everything has changed and now I am considering a lot of options. I even have a list of companies, where I might invest. Everything is possible.


via http://en.tengrinews.kz/finance/American-billionaire-Jim-Rogers-considers-investing-in-262774/


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, November 30, 2015

Jim Rogers holding US Dollars

My largest currency position is the US dollar. I expect some problems going forward in the world financial markets, and during those problems people will seek a safe haven. They think U.S. dollars are a safe haven. The U.S. may be the largest debtor nation in the world, but as you look around, certainly you are not going to the Euro or the Yen these days, so I own a lot of U.S. dollars and as the turmoil comes, the U.S. dollar will go higher and higher. It may turn into a bubble, depending on the severity of the turmoil. But if gets overpriced, I hope I will sell it at that point. 

Wednesday, November 25, 2015

Jim Rogers thinks oil may be in a bottoming process

"I guess I would buy agriculture with both feet, energy with a toe and watch the others."


Question: What would you say to an investor now who has little to no exposure in commodities and sees that most assets have been beaten down. What types of commodities do you think have the best potential now going forward?

Jim Rogers: I would say agriculture through the ( RJA ) [Elements Rogers International Commodity Agriculture ETN]. It is amazing how low some of these agricultural prices are. The average age of American farmers is 58 now. The average age in Japan is 66. There are more people in America who study public relations than study agriculture. It has been a nightmare industry for a long time and that’s got to change. I would certainly buy agriculture. [Rogers designed the index that RJA tracks.]


Question: What about other commodities?

Jim Rogers: I would probably start to buy oil in a small way, energy in a small way. I think it may be at the bottom, but since I don’t have much confidence in my convictions right now, I want to see more. There is a lot of bad news that keeps coming out about energy and yet the prices don’t go down. Historically, I have noticed that if something is going up and good news comes out and it doesn’t keep going up it usually means the top is being set. Likewise if something is going down, and bad news comes out and it doesn’t continue to go down, it usually means we are making a bottom, so I suspect that energy is making a bottom. 

via BARRONS


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, November 23, 2015

Jim Rogers owns FXI, ASHR, AGF.AU

Barrons Magazine: In an interview with my colleague Kopin Tan in 2013 you said that you wouldn’t buy China’s stock market “unless it collapses.” This summer, did it collapse enough to get you interested, and are you still a buyer?

Jim Rogers: In July 2015, I started buying on the collapse. There were a couple of days where it was down very big on a day. Well I was one of the buyers on those days. I haven’t been terribly active since.


Barrons Magazine: And you are using ETFs to invest in China?

Jim Rogers: I own FXI [iShares China Large-Cap ETF] and ASHR [Deutsche X-trackers Harvest CSI300 ETF], as well as some based in Singapore. But the best investment might be AMP Capital China Ord (ticker: AGF.AU ) units listed in Australia, which is a closed-end fund trading at a big discount.


Barrons Magazine: Do you have any short positions right now that you’d care to share?

Jim Rogers: I have been shorting U.S. junk bonds by going long the Proshares Short High Yield ( SJB ) and I’m shorting U.S. tech stocks through the ProShares Ultrashort QQQ ( QID ).


Barrons Magazine: But if you think U.S. stocks have one last leg up, why are you shorting these risk-on assets that should be helped by a rising market?

Jim Rogers: Well, one has to be hedged in case one is wrong.


via barrons

Monday, November 16, 2015

Jim Rogers talks stocks and recessions

Barrons: What if the time frame is now and the investors are folks who are comfortable with risks of emerging markets and commodities? 

Right now as I look at the world, I’m not terribly optimistic. The American stock market has been in a bull market now 6½ years. In America, we’ve had economic setbacks every four to seven years since the beginning of the republic, and chances are we’re getting closer to being due for some kind of correction, bear market even. And the next bear market is going to be worse than most of us have experienced because the debt is so much higher.

You know, we had a problem in 2008 because of high debt, but since then, debt worldwide has gone through the roof. I mean nobody has reduced their debt, almost no nation has reduced its debt since 2008—the debt has gotten higher and higher. So the next time around, we are going to have a very serious problem.

What I’m saying is that I’m not racing around looking for markets. I’m afraid that the big picture is such that we are going to have more problems in the next year or two, and being long most stocks or most investments is not going to be great.


Barrons: Let’s say you’re a 50-year-old Barron’s reader with a few million dollars in net worth. How much of your assets should be in these areas? So where do you think the big global problems are going to start?

Big problems are going to come from the U.S., essentially because it has been the American central bank that has been the most at fault. We’re the ones who started all this money-printing, and everybody else of course copied us. But it is the first time in recorded history that you’ve had all the major central banks printing staggering amounts of money: Japan, the U.S., Europe, Britain, we’re all doing it.

Having said that, when you look back at previous bear markets, they usually start with a small, marginal country that has trouble that snowballs, and the next thing you know, we’re all in trouble.


There is going to be another leg up in stocks as central banks continue to panic [and keep rates low]. I suspect it will be the last one.



via barrons

*Last update Nov 22, 2015

Wednesday, November 11, 2015

Demand for venture capitals is here to stay | Jim Rogers

The world is always going to need capital and sources of capital, whether it is the same as it was 20 years ago or 20 years hence. There is going to be a need for people to raise money whether they are startups or 40-year old companies. Therefore there is a need, it may be crowdfunding or some evolution of crowdfunding. Somebody has got to do it. 

There are going to be 18-year-olds in garages as long as we live, but there has to be someone to show the 18-year-old how to do it. If you are going to raise money, you should have a track record, it is the best way to do it. If you are more visionary than that. If you are going to replace sliced bread you’ve got to convince people of why you are going to replace sliced bread, then you can go forward. These are basic rules that have been around 1,000 years.

Monday, November 9, 2015

Market has gone on a strong run for quite a while now

Be very careful. If you are investing in anything, be very careful because the next couple of years, maybe not this month but we are going to see some real problems in the financial markets. It has been over six years since we have had any problems. We are well overdue, so be very careful no matter what you are invested in.



Wednesday, November 4, 2015

Future of Financial Services and Investment sector

Trading is becoming more automated, we cannot stop progress. There are going to be a lot fewer human beings in finance, there is no question about that. But we still have to tell these machines what to do. There will be fewer traders in the business. 

We have had long cycles in the world where the financial types were on top of the world and then it collapses; then we have long cycles with producers of real goods on top. When I went to Wall Street, finance was a backwater. After what had happened in the Depression and the War, I mean the last place anybody wanted to go was Wall Street or the City of London. Especially London, they had exchange controls, the nation was going bankrupt and other problems. Then along came the great bull market of the 80's, 90's. But now the world is changing again. I am sure you read that thousands of people are getting laid off in the financial community whether it is banking, insurance, stockbroker and/or investing. It is not an easy to place to get a job anymore and not an easy place to keep a job, but the numbers continue to decline. Great people can always get a job and keep a job. That is in part because there is so much competition because everyone now wants to get into finance and get an MBA. In 1958, America graduated 5,000 MBA's, the rest of the world graduated none. Now America graduates 200,000 a year and the rest of the world graduates thousands more. There is massive competition. 

It is a time when there is big leverage in the financial community. In the old days, banks and brokers had very little leverage for historical reasons now there is massive leverage everywhere. 

By the way, Lehman Brothers had been around since the 1850s and Bear Stearns was around from 1922, it was not like these were Johnny-come lately operations. You have governments being very anti-banker, anti-investors, and financial types, that are constantly passing laws and taxes and regulations to make it tougher. So it is not the place to be in 2016, unless you love 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, October 28, 2015

Buy Russia if you are bullish on Oil prices

I am optimistic about Russia. By the way if you want to buy oil or energy buy Russia, because their currency and their markets were demolished by the collapse of oil. So that would be a good way to invest if you think the price of oil will go up. 

Russia has huge natural resource, big financial resources, and it is not a debtor nation like the US or some of the other nations we know and love. I would be rather buying Russia than selling.


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, October 26, 2015

Markets are bigger than central banks

China is the second largest economy in the world, but the markets have more money than China, the markets have more money than everybody. One might be able to manipulate prices for a day, a week, or a month, but in the end the markets are bigger than central banks, governments, and everybody else. 


Oil price manipulation

What is happening with oil is that Saudi Arabia has dumped oil because America was negotiating with Iran and those negotiations hit their deadline last July and were extend. It was shortly after that when Saudi Arabia began dumping oil because America said ‘we need to dump oil to put pressure on Iran and Russia.’ Saudi Arabia was happy to do it because it would slow down the frackers, it won’t stop the frackers, but it will slow them down by bringing some sanity to fracking. I mean those guys are borrowing staggering amounts of money at relatively low interest rates, so that will bring some sanity to fracking markets as well. So this is all a political move that has happened because Saudi Arabia has enough staying power and enough oil to knock down the price of oil. 

Wednesday, October 21, 2015

Advice for future generation of investors by Jim Rogers

I drove around the world not for investing but for adventure. Because of who I am, when I go some place I do look around, I do observe. And in my travels I would see opportunities just by the nature of who I am. If I saw something changing I would pursue it.

And that’s a good way to do it. If you have the time and the money to go around the world in a car or a motorcycle do it. It’s a great adventure, at least for me. I’ve done it twice. The investing was a sideline.

But just walking down the street, if you can be observant you can find investment ideas. Sometimes I missed them but other times not, and I capitalized on it. And I read a lot. I don’t know much about basketball but I know what’s going on around the world because I read and that’s my passion.

Start with what interests you. Find the changes in the industry you like and figure out ways to invest and profit from it. This will you put you ahead of Wall Street because this is your passion, so you can get in before anybody else. You can also get out sooner, because Wall Street is always late in getting out.

Over the course of your life you can spot 25 or so good investment opportunities. Concentrate your efforts on understanding them rather than jumping around and you will do very well.


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, October 19, 2015

World and people keep evolving

You can farm without fertilizer, people have done that for a long time. But it is less efficient and if you start having phosphorous problems, fertilizer problems and water problems then, my God, there are 7 billion people in the world and there haven’t always been 7 billion people in the world. We may have gigantic changes again.

Civilization shifts again. Not might, we will. This is something that has been going on since the beginning of time. There will be great investment opportunities; but longer term there are staggering implications.

Monday, October 12, 2015

Freedom for citizens: USA vs China

The rule of law is extremely important if you want a sound, stable economy. This has been proven throughout history. Unfortunately, as we know, the rule of law in America is becoming less and less. Now they can break down your door if they want, they can go into your bank account, they can go into your bedroom. They can do anything they want. A lot of the freedoms and guarantees we once had no longer exist unfortunately. 

Now in China, and I am not defending anything China has done in the past few decades, but when I first went to China over 30 years ago, there was one radio, one newspaper, one TV, one everything! Everybody thought the same way and if you didn’t agree you were shot or went to jail! But now there are tens of thousands of demonstrations every year in China from people demanding their rights and demanding that the government not do some of the crazy things dictatorial governments have done in the past. It is changing. 

Again, I certainly don’t defend Mao Zedong, he ruined China, but China is going the other way and I presume that will continue.


Monday, October 5, 2015

When oil prices fail to drop on bad news its a bullish sign

Oil holding near $45 a barrel in the face of bearish news is a sign that prices are poised to recover. 


“When there’s bad news and something doesn’t decline, it usually means it’s at a bottom and will be turning. Whether we’re at a turning point or not, I don’t know yet, and I’m watching this very closely."

"Some companies are stopping drilling and production is actually going down in the U.S. now. Shell is canceling some drilling. All of these mean supplies will be going down in the future.”



Opportunities arising in Agriculture 

“Agriculture is probably where the best opportunities are. I’m not buying rice and sugar at the moment but some of these things are down a lot from their all time highs. There’s potential opportunities out there.

Wednesday, September 23, 2015

Jim Rogers Interview on Star Online - Malaysia

Q: What is the outlook of the financial markets next year?

The troubles in the financial markets have started. There will be a lot of turmoil in the financial markets next year, eventually leading to some sort of crisis, perhaps even a full blown crisis.

Some emerging-market currencies are already having problems this year, and this is spreading to bigger things since this is the first time in history that all the major central banks are printing huge amounts of money.

My main concern is that the US Federal Reserve doesn’t know what it’s doing. It does not know what it is going to do next as interest rates are going to go higher so it has to start withdrawing huge artificial oceans of liquidity. When that takes place, 2016 and 2017 are not going to be fun years because these guys have made mistakes and they have to correct it.



To what extent will Asean economies be affected by the volatile financial markets?

The region will fortunately be in better shape than most as they’re oil-producing countries as well as agriculture-based economies. It is the US and Europe that will be impacted the most as they are in worse shape than most.

Asean has savings, no big debts and convertible currencies. However, when Asean’s main markets have problems, there will be problems too for Asean companies. We’re going to know something is wrong although we may not suffer as much as Italy did but the effects will be there as Europe, the United States and Japan are major customers of Asean exporters.



What can Asean expect in the wake of the economic turmoil?

Unemployment, declining corporate profits and some bankruptcies. More bankruptcies will be seen in the developed economies than in Asean as companies in the region do not have debt weighing them down nor do countries in the region suffer a declining population. So, you’re in the right place, don’t leave. Oil-producing and agriculture-based economies such as Indonesia and Malaysia are less likely to be affected although commodity prices have fallen. But companies doing a lot of business with the United States and Europe will be impacted.

The region will have to worry about how decisions made in Washington DC, Tokyo or Europe will impact it, that’s the worry. These are the people causing the problems and we have to pay for it. I would rather be here than in a Western country as these countries will have more problems.


What measures should Asean take to mitigate the effects of the volatility?

Asean governments should pay down their debts, don’t close off their economies and have more open societies. Stay open because history shows that economies that try to take protectionist measures in the end wind up being worst off.

Countries in the region are fairly open, so the worry is that the governments will take protectionist measures when things start to get wrong. They should stay open and pay debts. Asean governments should balance their budgets and when the Asean Economic Community comes about, there’s a sizable market of 600 million people. Companies can now expand into a bigger regional market and build capacity for a global market too. If they do that, we will all be better off.



via http://www.thestar.com.my/Business/Business-News/2015/09/19/Gearing-up-for-the-turmoil/?style=biz

Monday, September 21, 2015

Investing in what you know


You should invest in only what you know about. However, I have put some of my money in places that are depressed like Japan, Russia and agricultural commodities. I do own some real assets like silver and gold. However, I have not bought silver and gold for a while, but if prices fall further, I will buy more gold, and again the best is to stay with what you know.

ASEAN (Association of Southeast Asian Nations) has lots of agricultural produce, so this might be a relatively less dangerous place to be. While agricultural prices are depressed and we may see more problems, we’re not going to see disastrous problems. Stocks in the New York Stock Exchange can fall by 60% to 70% when things get bad but I don’t see sugar or rice prices falling by that amount. Agricultural prices have fallen and may start to turn around.

NASDAQ

Avoid technology stocks, especially the mainly US-listed social media and biotechnology stocks as their valuations are extremely high. Salaries of employees are also very high. Even if there’s no tech bubble, the share prices certainly look expensive. I will not be putting my money there.


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, September 16, 2015

Janet Yellen should not be at the Fed



Low interest rates are destroying the people that save and invest. Pension plans, trust companies, insurance companies -- we’re destroying all the people that save their money for a rainy day and now they are being ruined… to bail out people who get it wrong -- who ran up huge debts who didn’t have the money. We are ruining the country with this idea.

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, September 14, 2015

Fed wont raise rates this month says Jim Rogers


What’s going to happen is, the rates are going to go higher, markets are going to go down, people are going to call up and say, ‘You must save civilization,’ They [Fed will ] panic and then come riding to the rescue... - Jim Rogers 

Thursday, September 10, 2015

Jim Rogers on China, Gold, US Federal Reserve, Commodities - INTERVIEW

Q. Governor Raghuram Rajan has been criticized for being stubborn on interest rates.

Jim: Central bankers are supposed to be criticized for things like that. Central bankers are supposed to maintain currencies and low inflation. If you want to do something about the economy, you should call out Modi or Parliament and not the central bank. Central banks that cut interest rates because of politicians—such countries usually have economic problems, currency problems, and all sorts of other problems. In my view your central banker is doing the right thing—he understands what banking is all about, he understands what currencies are all about and he understands the economy. The more criticism he gets, the better—that means he is doing what the central bank is supposed to do.



Q. What is your take on what is happening in China right now? The reality is that foreigners hold very few China shares.

Jim: China is pure noise and hype and it is exciting to talk about the Chinese market that has moved a lot. Virtually no foreigners own shares in China. The press is talking about short-selling, but there is hardly any short-selling in China. The Chinese market has done better this year than the American stock market. So you in the press should be talking about the American stock market—but for you that may not be exciting enough as compared with China. I bought Chinese shares during the two-three days when its market collapsed—on the really serious down days, I bought more. I like to buy low, and I found that in history, usually when you buy during panic, things will turn out to be okay two-three years down the road.

I would rather be in China than in most parts of the world, because its stock market is still somewhat depressed. The Chinese stock market is still below 50% of its all-time high. The American stock market is near its all-time high. The situation is that for the first time ever, we have had six years of huge money print across the world. The world is floating on a huge artificial ocean of liquidity and that is going to end sooner or later—it is looking to be sooner. Many markets are going to suffer in the future as this happens. I would expect that this year or next year, we will begin to see a lot of problems worldwide. In 2008, China had a lot of money saved for a rainy day, and when it started raining, they began spending their money. This time around, China is facing debt—historically China has not had much debt—so China, is not going to be so insulated the next time around. I bought Chinese shares in the panic, and some of them are more down now because the Chinese markets went down again after I had bought. I feel that I should own something and China and Russia are the couple of markets that are depressed, where they are changes, and that is why I own these shares.


Q. Is this the best time to buy gold?

Jim: Not for me. I own gold and I expect another opportunity to buy gold within the next year or two. I suspect this will happen. Interest rates are going to go higher, which will make the US dollar go higher. When there is turmoil, many people seek a safe haven, and the first thing they go to is the US dollar. Nearly everyone thinks the US dollar is safe—it is not! But people are not going to buy the yen or euro and you can’t buy the Renminbi, so a lot of money will go into the US dollar, and the dollar will go higher. When the dollar goes higher, commodities will not do so well. So gold will suffer. What I suspect will happen is that the dollar will turn into a bubble in the next year or two as everyone is buying into it. Gold will be down and if I get it right, and if the dollar turns into a bubble, I will sell the dollar and put it into gold.



Q. What do you think the Fed will do?

Jim: I would expect the Fed to raise interest rates. The Fed always follows the market. People think the Fed sets the market, but if you go back historically, you will see interest rates usually move ahead of the Fed, and the Fed follows along. Interest rates will go higher, and when that happens, at some point it will affect markets around the world, including the US. At this point, everyone is going to call the Fed, asking them to save us. The Fed is run by bureaucrats and academics, and they will then come riding to the rescue—markets will heave a sigh of relief, go higher, and that will probably be the last big move upwards for stock markets around the world. After that, we all come to the realization that central banks are not as powerful as we thought, and there is only so much they can do. That is how we see the world developing over the next couple of years.


Q. Is the bull run in the commodities market over for good?

Jim: It is certainly down. In the scenario that I outlined, it is hard for anything to go up, if we are having financial turmoil around the world. If what I had mentioned takes place—where I sell my US dollar and buy gold—then gold will have its comeback. Then gold could turn into a bubble three-five years from now. I don’t know if this will happen or not. I hope it does not. Other commodity prices may also go up in the future, because supply has not kept pace with demand. Things like iron ore, oil—there are no new supply streams coming. The reserves of all major oil companies are down, and we are not really finding new oil except for fracking. But frackers cannot make money at current crude prices. So fracking is being slowed or curtailed. In the meantime, oil reserves everywhere are doing down. The supplies for most commodities are not strong enough or large enough to keep prices down for ever.



Q. Why don’t you invest in start-ups? Be it India, China or Southeast Asia, the start-up ecosystem is booming.

Jim: I do not invest in private companies. I feel more comfortable investing in companies where I think I can sell, if and when I want to. I don’t have the interest or the time these days to get deep into and understand these start-up companies. I do not understand technology well enough to get into such start-ups. Today, there are 100's of unicorns with billion-dollar valuations—this sounds like 1999 in the US. In 1999, the bubble was in a couple of small pockets in the US. Now, this bubble is all over the world–China, India… Now there are hundreds of entrepreneurs in their garages who think they are worth millions and billions of dollars. They are worth that right now, but will they be worth so much when the next turmoil comes? Probably not. There are spectacular opportunities for start-ups—there are hundreds of them, but most of them will fail. Most of the companies that were on everybody’s lips in 1999 don’t exist today—most have fallen apart and disappeared. Some of today’s start-ups will make it—they will become huge. Alibaba and Tencent look like they will make it big. Write down the list of companies today, put it away, and look at it 10 years later. Then you will say, ‘wow that was a bubble’! 


via LiveMint

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, September 9, 2015

Jim Rogers interviewed on Zee News India | VIDEO



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, September 7, 2015

Jim Rogers on exiting his Indian holdings | Interview

Q. During your last interaction with us, the Modi government was close to finishing a year in office. You bought into India last year after the Bharatiya Janata Party’s (BJP’s) victory under Modi, and had said that you were set to take a call on whether to remain invested in India. Are you holding on to your Indian shares?

Jim Rogers: I did wait a little more time (after the last interaction), but now I have sold all my India shares. I did sell my India shares as I don’t see anything happening. The market was high, and investors had anticipated great things, including me—even if he (Modi) were to do things, the market had already discounted some of that because it had gone up a lot, and there was nothing new coming from Modi. You can’t just invest on hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that.


Q: So you’ve exited India. You bought into India last year, and as you said, the markets have done well since. Did you therefore make a good deal of money when selling?

Jim Rogers: I don’t like to talk about how much money I have, or how much I made. I am not complaining about my investments in India. Let us leave it at that. I may see myself returning back to India at some stage if Modi starts doing things, or if the markets go down a lot—some stage can even be a long time away, but not at the moment. If Modi made the currency convertible, if he made the markets open to outsiders, then I would have to be back in India again. So far Modi has been doing worthwhile things like addressing some social issues—I am all for that, and that is great for a lot of people—but India needs more.



Q. The situation is getting better in India; the rupee has been reasonably stable as compared to other emerging market currencies, inflation is coming down, interest rates are set to go down, the fiscal deficit is under control and lower oil prices continue to help.

Jim Rogers: Well, you say that. But Modi had the largest mandate in modern history—no recent politician had what he got. But if he can’t implement reforms, then who can? Is anything ever going to be done? I think it is an accurate statement that no recent Indian government had this kind of mandate. Yet, very little reforms has happened. I am sure Modi is a smart guy, he enjoys good press, and he makes a lot of friends for India. But I, as an investor, after almost a year-and-a-half, have decided to move on to other places, partly also because stock markets are not going to be particularly good for the next year or two. And if I am going to be at some place, I would rather be at a market that is either depressed, or where dramatic changes are taking place. The India market is not depressed. If markets all around have problems, it is going to impact India, too.



Q. As someone who has watched India for a long time, where do you see the country headed? What are the challenges for India—is it job creation for the youth that meets their aspirations?

Jim Rogers: India has very high debt-to-GDP (gross domestic product) ratio—it is higher than many countries. Studies have shown that when countries have a high debt-to-GDP ratio, it is difficult to grow at a reasonable rate. I don’t really see much going for India right now except Modi, who is not doing anything, when he should be or could be doing a lot. Your central bank governor is probably the best in the world.

The basic reason you mentioned, about India having to create so many jobs, is one of the reasons why I am not investing in India. India historically, or at certain times, has been one of the most successful countries in the world. You could have ruled the world if you were aggressive, but those days are not coming back—India is held back by too many restrictions and regulations. Go around the world, and you see smart successful Indians everywhere—this means you don’t have enough opportunities for these people back in India. You have saved your farmers by making it illegal for foreigners to own more than five hectares—how on earth can an Indian farmer compete with an Australian farmer with 50,000 hectares? In history, India has been one of the great agricultural nations of the world—you have the land, the people, weather—God gave you everything. And then, he also gave you Delhi to mess it all up.

I, as well as others, thought that Modi was going to change all this. With all these crazy laws and regulations, you make it difficult for foreigners to invest in India. With investments comes jobs. Not just foreigners, your bureaucracy makes it difficult for even Indians to invest in India. It is difficult to take money in and out of India—even as an investor, if you bring money into India, there are all kinds of regulations. Indians would rather like jobs and a better economy rather than all these laws, regulations and bureaucracy. 



via Livemint

Monday, August 31, 2015

Artificial government intervention does not work most of the times

Intervening artificially usually does not do anything except give investors or speculators a target. 

If somebody from a central bank said ‘we’re going to keep the price at 10’ then everybody knows. Like with the Swiss recently. There is no risk! So artificial interference rarely works and is never good.



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, August 26, 2015

Oil drop is temporary, worldwide reserves are in decline

America went to Saudi Arabia and told them to dump oil to put pressure on Iran and the Russians. Saudi Arabia was happy to do it because they also wanted to slow down fracking in the U.S. You had this artificial geopolitical event, which drove the price in oil down. If you get out the charts, you can see the drop almost exactly coincided with American negotiations with Iran.



via http://theguruinvestor.com/2015/08/14/rogers-wait-to-buy-oil/



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, August 24, 2015

Even New York could end up in economic ruins

I have been a lot of places and you see how rich they once were, whether it is Belfast or Prague or whatever, you see how rich they once were and now they are destroyed! You go to Carthage; Carthage at one time was the terror of the Roman Empire. Carthage is just flat! There’s nothing there except stones and ruins. 

So it doesn’t matter who you are. Rome! Rome went from a population of millions to a population of a few thousand by the time it got into its major decline. .... the Romans actually ruined themselves because they spent money, they debased the currency, they went huge debt, a staggering number of regulations, all the things that have happened throughout history. But what really brought them down was they stopped paying pensions to the soldiers because they didn’t have enough money. Well, the soldiers didn’t like that so they went around getting their own pensions. But yes it did go into a decline and then the barbarians marched in because there was nobody to defend it.

Some day we are going to New York and look around, if the buildings are still there, and say ‘my god these guys must have had a huge amount of money once upon a time!’ Maybe the buildings will have fallen down or be abandoned or bombed if war comes, but no it doesn’t matter who you are, it’s going to end..




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, August 20, 2015

Oil could be a buy after it goes down further

I would not buy oil. It’s pretty clear to me that oil is going to go down to test the previous lows, and it might even go under a little bit to scare people. I wouldn’t buy gold either. I’d rather buy agriculture if I were buying commodities at this stage.

The way most markets work is once you have a big collapse in something and it hits a low, there’s a second test of the lows. Right now you’re getting that second test in oil. I suspect that it will pass the test, or at the worst, maybe make a minor new low.



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, August 19, 2015

Could see further weakness in Gold



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, August 17, 2015

Biggest bubble now in Bonds

 The bond market is perhaps the biggest bubble in the world right now. And, when it finally starts going the other way, there will be huge losses in bonds. We might already have seen the top and the bond prices have been going down or moving sideways for two-three years now.


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, 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.

Monday, August 10, 2015

Jim Rogers interview on Business Standard

Jim Rogers was recently interviewed by Business Standard. Below are the transcripts.



Can the euro zone disintegrate over the next five years?

I think it will certainly change from what it is now. It could disintegrate, but I hope it doesn’t. The world needs something to compete with the US dollar. A sound euro will be a good thing, if they can make it a better currency. 




What lies ahead for Greece? Do you think this could set a bad precedent for other indebted countries in the euro zone?

Well, that’s one reason you have the Euro Zone/EU (European Union) refusing to give in. If they give in to Greece, they will have to give in to other people as well; they cannot afford that. That is why they are being so tough with Greece. They should be tough, otherwise the contagion will spread to the whole world. The world cannot afford this. So, continuing to be tough with Greece is a good thing.

Problems with Greece have been going on for five years and it is perhaps higher now than it was before. They still spend huge amounts of money on pensions and government employees. So Greece hasn’t really had serious austerity yet.


You had also said that the US dollar could cross the 100 mark against most global currencies. Do you still hold this view?

Well, it still can go past the 100 mark against most currencies but it may turn into a bubble. Once we have more currency turmoil, many people will flee to the US dollar and because they do not know what else to do. They think it is a safe haven. It is not a safe haven. It is not a prediction but this can happen.
Do you think the US dollar could probably lose its tag of a safe-haven currency over the next five years? Which currency, in your opinion, could replace it?

That will happen, but it will take longer than five years. One reason why it will take longer than five years is that the only currency I see seriously coming close is the Renminbi, but the Chinese currency isn’t even convertible yet. So, it is impossible to see it replacing the US dollar at the moment.



What is your outlook for gold and crude oil?


I own gold and I am not buying gold right now. If it goes down, I will buy more. As for oil, the way most markets work, they have a big drop and collapse followed by a rebound. It is sometimes called a ‘dead-cat bounce’, and then it goes back to test the bottom again. I suspect crude oil will test the lows and pass this test, but in the meantime, I am not buying oil. I am waiting to see the oil test lows again. 


Wednesday, August 5, 2015

Problems that we could see .....

We’ll have bankruptcies, huge fluctuations and declines in stock markets. We will have the bond market slowing a lot and a lot of turmoil in currencies as well. 

In the US, we haven’t had even a 10 per cent correction in stocks — it’s been five years. Now, we will have a lot of big declines starting in a year or two.



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, August 3, 2015

Crude oil may not have bottomed yet

I own gold and I am not buying gold right now. If it goes down, I will buy more. 

As for oil, the way most markets work, they have a big drop and collapse followed by a rebound. It is sometimes called a ‘dead-cat bounce’, and then it goes back to test the bottom again. 

I suspect crude oil will test the lows and pass this test, but in the meantime, I am not buying oil. I am waiting to see the oil test lows again.


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, July 30, 2015

Why UK should not leave the EU


If the UK left the European Union, London’s dominance of foreign exchange including euro trading would gradually decline and then end as the flows moved to Asia and other European capitals.

London’s dominance of the foreign exchange market evolved historically but evolution will continue in other places if the UK leaves. It would be foolish to leave the EU, but politicians have done foolish things since the beginning of time.


via REUTERS


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, July 29, 2015

People buy US Dollar during market crisis

Once we have more currency turmoil, many people will flee to the US dollar and because they do not know what else to do. They think it is a safe haven. It is not a safe haven. It is not a prediction but this can 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.

Tuesday, July 28, 2015

Gold could bottom once China crisis passes


Many stocks in China are closed, so one cannot trade in those. The people who had margin calls and who had borrowed money had to sell anything to raise money, as they could not sell stocks.”

Once this artificial liquidation is over, I suspect base metals would be a good place to be in. The Chinese have borrowed against their copper and other base metals, so they were forced to sell when they got huge margin calls. I suspect we will see some kind of bottom going forward.




via ValueWalk

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, July 27, 2015

Market Corrections are part of the overall markets

Risk aversion is good, because one needs corrections and consolidations. Bull markets climb a wall of worries; when nobody is worried and nobody is scared, it’s a problem. So, you want people to be scared and worried. This is not good for people losing money but it is good for the overall markets.




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.

Friday, July 24, 2015

India debt relatively high compared to other Asian countries

Business Standard: There were some reports that the rupee could come under pressure in case the situation in Greece worsens. What are your thoughts?

Jim Rogers: I don't know much about the rupee at this moment, but India still has very high amount of debt compared to some other regions across the world. Many other currencies would be a better place to be than the rupee.



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, July 23, 2015

Jim Rogers sells his India holding

I bought some shares for the India reform story earlier, but sold those as there was no reform. Nothing has happened and so I sold my Indian shares.

But most people are still hopeful reforms will happen and these still are early days for the government…


That’s okay. Some people will make money in India. Narendra Modi has been in power for over a year, and virtually nothing has happened. He said he knew what he was doing while campaigning. He ran a state earlier, so what’s the problem now? Doesn’t he know what to do? Or can he not get it done? 

Anyway, I sold off my holding in India.



via Business Standard


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, July 22, 2015

Rogers says stock market declines coming


Over the next couple of years, there will still be pain. I am not very good at short-term trading but I certainly know we will have plenty of problems in financial markets over the next couple of years. We’ll have bankruptcies, huge fluctuations and declines in stock markets. We will have the bond market slowing a lot and a lot of turmoil in currencies as well. 

In the US, we haven’t had even a 10 per cent correction in stocks — it’s been five years. Now, we will have a lot of big declines starting in a year or two.



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.

Tuesday, July 21, 2015

Jim Rogers phone chat with Economic Times [VIDEO]



Topics of video include Iran Nuclear deal with USA, Oil supply and prices



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, July 20, 2015

Jim Rogers thinks Russian ruble has better fundamentals than US Dollar


Russia has low debt, unlike Greece, as well as convertible currency, which is quite unique for the new markets. So fundamentally its position can be called normal. It is being pressured by lower oil prices, but as soon as the black gold finds the stable point the situation will improve for the ruble. 

If we simply write out on paper the facts that lie behind the ruble and the dollar, without naming the currency, then everyone will want to buy rubles and no one will buy dollars. But as soon as you name them then, of course, people buy dollars." 


http://www.fxstreet.com/analysis/daily-pfennig/2015/07/17/


Wednesday, July 15, 2015

Jim Rogers vs World Bank and IMF [VIDEO]

"If you go back and look at the the World Bank and the IMF have never been right about anything other than spending billions and billions of dollars and coming up with great life styles for the bureaucrats who have the jobs. You should see how they live, the benefits that they get for doing very little."




Watch minute 6:25 and 20:00 to hear Jim Rogers take on the Bankers






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.

Tuesday, July 14, 2015

Gold will shoot up when people lose confidence in governments

Gold is in a correction, and the correction has gone on for four years. Although I am not buying gold, I am expecting an opportunity to buy gold sometime in the next year or two. For instance, if gold goes under $1,000, I hope I’m smart enough to buy a lot more gold.

When I say under $1,000, it’s not that I know what I’m doing, it’s just that typically 50% corrections are normal. Before this is over, gold is going to end in a bubble. In the past, when there are collapses of confidence in government or currencies, people flee to gold. Part of the problem is that many people consider gold to be holy. They are mystical about it. Some mystics are surprised that gold goes down at all. When the next problem comes, people will lose confidence in the government, central banks, and paper money. That’s when gold goes up the most. That’s also when the central banks will do anything to save the day.


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, July 13, 2015

Alternative to World Bank and IMF needed

The world needs something to compete with the US-dominated institutions, some of them - the World Bank and the IMF- have become corroded and ineffective. So, if BRICS offer any new structures that can compete with these long-standing decomposed institutions, it will be very good. Good for the whole world, including Russia and China.



VIA http://rt.com/business/268111-institutions-brics-alternative-renminbi/


Wednesday, July 8, 2015

What Jim Rogers is buying right now

Things I'm buying now are those that are down. Russia's a very hated stock market, Japan is down 50 per cent from its all time highs, China is down 30 or 35 per cent from its all-time highs.

I started investing in Japan about three years ago, Russia two years ago, for instance.

I bought Zimbabwe shares two weeks ago. That's new, I didn't buy a lot. I haven't bought shares in Zimbabwe for about 25 years. It's a disaster but therefore cheap. What instigated me to start investing there again was that they completely abolished their old currency and started using US dollars.

The real new future in Zimbabwe will happen when President Robert Mugabe leaves. He's an old man and he will leave some day, and that will be the real change.


 VIA Straitstimes 


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, July 6, 2015

Greece should go bankrupt and get it over with and start over [VIDEO]



Greece will collapse .... and people will be terrified. 

What they should do is to let the banks go bankrupt—they made their loans, you and I didn’t make the loans—let them go bankrupt and start it over.


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, 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.