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.