Jim Rogers message to U.S. investors only in two words: "Be careful ," said CNBC.
"The
U.S. is the most indebted nation in the history of the world ," said
Rogers. " There may be a very strong upswing of the stock exchanges in
the U.S., but it is not based on reality . I encouraged investors to
understand that in the paradise of fools , to be cautious , but when
people start to sing praises , saying : " I've been such a celebration
and I know I have to go ," he added .
For it is only a matter of
time before the U.S. stock market to fall into huge problems because of
the program of the U.S. Federal Reserve to stimulate the economy and its
similarities in the world.
"First of all - in the entire history
of the United States have occurred drops every 4 to 6 years. This means
that at some point over the next few years - maximum 3 - will once
again have our problems caused by any reason , "said the investor . "For
instance, we had 2001 and 2002 , then in 2007-2009 it became much worse
. Well, the next time is going to be even worse because the debt level
is much, much higher. The same vreme each country increases its debt , "
he argues .
Stimulus measures of central banks such as asset
purchases with printed money raise asset prices in the short term .
According to Rogers , however, this is all they can do .
"This is
the first time in the known history where every major central banks
print money , so that the world keeps on artificial sea of money.
Well, one day this artificial sea will disappear and when that happens,
the crash will be even more severe . Yes , this moment is approaching , "
he is adamant . " If I was smart enough to be aware of when it will
happen, I'd be rich ," says the investor .
Although the predicted
disaster , he still advises investors to sell. "I see no reason to rush
and sell shares now because of these artificial events that happen ,"
said the investor . " I do not buy U.S. stocks at the moment , but do
not bet against them because they fear that could lead to a huge
balloon. So I sit and watch , " he explained his position .
What
would you convinced him to sell ? "If the market expanded twice over the
next 6 or 8 months, as has happened in the past, I would have to think
whether to shorten ," said Rogers. But until then, "because of the
uncertainty - at least in my head - will not initiate anything," he says
.
Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).
Jim Rogers graduated from Yale University and has a degree in philosophy, politics and economics from Oxford University. Jimmy Rogers became a Wall street legend when he and George Soros founded the Quantum Fund.After his career as a hedge fund manager and investor,Jim Rogers now periodically teaches finance at Columbia University, and appears regularly on the CNBC Cable Network.
Monday, October 7, 2013
Not Enough Supply Coming On Stream To End The Commodities Bull Market
“I don’t see enough supply having come on stream in most commodities to end the Bull Market. Agriculture inventories are near historical lows because the world has consumed more than it grows for a decade now. Many minerals companies have canceled capital spending programs because they, too, have heard from Wall Street that the boom is over.” - in Live Trading News
Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).
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