Rogers remains a true believer in the precious metal given his unease with what he sees in global markets. Frankly, he’s worried. He’s not a believer in Wall Street’s rally and is shorting U.S.
Barron’s Asia recently caught up with the 73-year-old investing veteran in his adopted home
Barron’s Asia: So what’s your big picture view of global markets?
Jim Rogers: People tend to think stock markets are fine because the U.S.
I own a lot U.S.
Q: What could shake confidence in the U.S.
A: Well, if Donald Trump blows up Mexico or goes to war with China then it would scare people. But even then people are going to think America is going to blow up the world so they would buy more dollars. If Trump wins and he does what he says he’s going to do such as wage trade
Q: So you’re no fan of Trump. How do you rate Hillary Clinton?
A: With all due respect, Hillary Clinton doesn’t have a clue. The only difference between Clinton and Trump is it’s going to take Clinton longer to force us all into bankruptcy. What happened in the Middle East under Hillary Clinton was a total disaster for America and what will happen under Hillary Clinton as president will be even more of a disaster. Perhaps the only worse disaster for America is Donald Trump. It’s one of the few times in history where both candidates running for the presidency of a major country are disliked by everybody. I’m not going to vote for either of them.
Q: How concerned are you about the dislocations in the global economy and the evolution of more sharply divided and populist politics?
A: There are a lot of similarities to the late 20s, where there were strange politicians saying strange things and coming to power with strange ideas. At the same time, you have financial dislocations left over from previous financial dislocations. In the late 20s, a lot of money flowed into the U.S.
Q: Gold is up 30% since the beginning of the year. You’ve been a long time bull but are you still buying?
A: I own
Q: What other commodities are you bullish on?
A: I’m optimistic about agriculture. Sugar, rice – just list the agricultural commodities that are down and I’m interested. I have some exotic
Q: You started looking at Russia three years ago after having been pessimistic about the unloved market for almost five decades. What have you been buying?
A: I own Aeroflot (AFLT.RU) and Moscow Exchange (MOEX.RU). I also
I also own Russian government bonds in rubles and I plan to buy more when they go down again. They have very high yields and are a double play on the ruble and Russian interest rates. The ruble will go down with
Q: So where is the next Russia?
A: Kazakhstan. It’s also a former Soviet country that’s affected by oil. It’s
Q: You’ve said China will be the most important nation of the 21st Century. What’s your view on China’s slowdown and its ability to handle challenges like
A: I own Chinese shares and my children speak Mandarin – they’re not going to stop speaking Mandarin if China starts having economic problems. There will be problems in parts of the Chinese economy. The manufacturing sector isn’t going to be in such great shape, especially exporters and companies with lots of debt. But there are also industries that will do well no matter what happens in the wider economy. China is spending so much money to clean up pollution that environmental protection will continue to do very well. Health care is another because China needs more health
China’s going to have problems, which doesn’t really surprise me, but my kids aren’t going to start learning Danish when we see problems in China because China is going to come out the other side as the most important country of the 21st century. America, which became the most successful country in the 20th century, has lived through depressions and a horrible civil war. Every individual, company or country that rises has problems along the way – that’s how the world works.
Q: You’re also upbeat about the Chinese travel industry. Why?
A: One of the great growth industries of our time is going to be Chinese
Q: How would a weaker
- Source, Barrons