Thursday, March 15, 2018

The Indian Stock Market is the Most Vulnerable in the World

Chairman of Rogers Holdings, Jim Rogers says that he will not invest in India for now.

The sell-off in the US equity markets – the biggest in two years – was triggered mainly by rising bond yields and spread across major global indices on Tuesday. Jim Rogers, chairman of Rogers Holdings tells Puneet Wadhwa that the US bond market that hit bottom in 1981 and has been in a bull-run since then, is coming to an end. There will be rallies along the way, he says, but we will enter a very long bear market. Edited excerpts:
What is your interpretation of the rout we saw in global equity markets today?

The Dow Jones Industrial Average (DJIA) index has gone up quite a lot in the past few years and has had not reactions to any major event. The correction seen in global markets was well overdue. However, I cannot say right now if this correction turns into something more than just a one-day fall and goes deeper. It is too early to predict. That said, we were very, very overdue for the markets to go down.
How do you see the bond markets play out over the next three – six months?

The US Federal Reserve (US Fed) is likely to raise interest rates in March 2018. I think they will. This will trigger a rally in bonds. The bond yields will go higher over the next few years, although the central banks will try to cause rallies every time things get really bad. The US bond market hit bottom in 1981. That long bull market is coming to an end. There will be rallies along the way, but we will enter a very long bear market.
What does all this mean for the Indian markets?

The good news for the Indian market is that there is a general election coming up in 2019. Narendra Modi will do everything he can to win it. This means giving out sops and adopting populist measures as well. On the other hand, the Indian stock market has been on a strong footing since quite some time, but you now have a capital gains tax on equities to deal with as well.

Historically, we have seen if you tax something, whether it is gold, cars or any other asset, the demand gets supressed for that item. So, the Indian stock market is more vulnerable than any other global stock market now due to the introduction of LTCG.
Are you looking to invest in the Indian markets on any correction?

No, I do not. The Indian markets, as I said, are more vulnerable than any other global market. Given the run up seen over the past few months and the introduction of LTCG has made it more vulnerable. I will not invest here for now.
Which regions and asset classes appear investment worthy to you right now?

I like Asian tourism stocks, agriculture stocks. That apart, I also like companies engaged in pollution clean-up. India and China are both filthy and need to be cleaned up. Some areas of the world economy will do well going ahead no matter what happens. But basically, this is not a good time to be buying shares.
What is your outlook for crude oil prices and gold?

Crude oil prices are in the process of making a bottom. Over the past few years, since 2015 to 2018, people will say the oil prices tried to make a bottom, but it has been a complicated bottom. I think oil prices will be a good buy over the next couple of years. I am not buying oil at the moment. Now that the equity markets are going down, oil prices will correct too.

I am not buying gold at all. I am waiting for the gold prices to go down a lot from here. If the overall markets go down, gold prices will also be impacted. Over the next one – two years, I hope to buy a lot of gold, especially if it goes down a lot. I do not hold any cryptocurrencies, like bitcoin etc.

- Source, The Print

Monday, March 12, 2018

This Will be One of the Worst Market Crashes Ever

Rogers has seen severe bear markets before. Even this century, the Dow plunged more than 50 per cent during the financial crisis, from a peak in October 2007 through a low in March 2009. It sank 38 per cent from its high during the IT bubble in 2000 through a low in 2002.

“Jim has been talking about severe corrections since I started in business over 30 years ago,” said Alibaba Group Holding Ltd. President Mike Evans, a former Goldman Sachs Group Inc. banker. “So I’m sure he’ll be right at some point.”

Rogers predicts the stock market will experience jitters until the Federal Reserve increases borrowing costs. That, he says, will be the point when stocks go up again. He said he’ll buy an agriculture index today, reiterating his view that prices of such commodities have been depressed for some time.

“I’m very bad in market timing,” Rogers said. “But maybe there will be continued sloppiness until March when they raise interest rates, and it looks like the market will rally.”

Friday, March 9, 2018

Veteran investor Jim Rogers says next bear market will be 'the worst in our lifetime'

Jim Rogers, 75, says the next bear market in stocks will be more catastrophic than any other market downturn that he's lived through.

The veteran investor says that's because even more debt has accumulated in the global economy since the financial crisis, especially in the US.

While Rogers isn't saying that stocks are poised to enter bear territory now - or making any claim to know when they will - he says he's not surprised that US equities resumed their sell-off on Thursdayand he expects the rout to continue.

"When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime," Rogers, the chairman of Rogers Holdings, said in a phone interview.

Tuesday, March 6, 2018

Fiat Money is Out of Control, This Will End Us

Jim Rogers and Michael Pento discuss how reckless and out of control central bankers have become. The endless money printing is going to bring the entire system down.

- Video Source

Tuesday, February 20, 2018

Jim Rogers: Rising Inflation Will Push Commodities Higher

Rogers expects to see rising inflationary pressure when prices of agricultural commodities start climbing. In fact, he has noticed that inflationary pressure has been mounting but the meltdown of crude oil prices have, to a large extent, helped cushion the impact so far.

“We are already seeing inflation in many places and many products, [but] most governments lie about it. They have a reason to lie about it. Prices are going up and it is going to get worse. In the past three or four years, inflation has been covered up by the [fall in] crude oil prices, which have come down so much. It is the single most important thing in the cost of living.

“When agricultural [commodity] prices [start] going higher and oil is also going higher… yes, we are going to suffer [from high inflation],” Rogers commented.

- Source, The Edge Markets

Friday, February 16, 2018

Jim Rogers: An Agriculture Boom is Now in the Making

An agriculture boom is forming, said Jim Rogers, who intends to invest in agriculture more than in Inc.

The billionaire commodity guru believes agricultural product prices are hitting bottom now, and that they will rebound soon as supply would not be able to keep pace with demand growth.

Against such a backdrop, he anticipates rising inflation would be the by-product that would come along with the climb in crop prices.

Rogers observed that the supply of agricultural products, be it foodstuff, or crops like cotton or silk, would be in shortage in coming years, simply because there are fewer people who will want to farm.

“No one wants to be a farmer anymore, as compared to the past, when farmers were like masters of the universe for a long period of time.

“The agriculture sector has been a disaster for 35 years. Things are so bad. The average age of an American farmer is 58, the average age in Japan is 68. And do you know that the highest suicide rate in the UK is in the agricultural sector … thousands of Indians commit suicide every year …,” Rogers told selected Malaysian media at the sidelines of the three-day 2018 Investment & International Trade Forum in Hangzhou, central east China, over the weekend.

As such, there will be shortage of supply as a result of lower production in the coming years, he said. On the other hand, rising affluence in developing economies, such as China, India, Russia and Asean countries, will continue to fuel demand growth.

“There will be an imbalance in the future between demand and supply in agricultural commodities … and that will drive prices higher. I am not talking [about] all commodities … I am referring to agricultural commodities, for example sugar, or palm oil as you mentioned,” said Rogers.

To ride on anticipated high agricultural commodity prices, the veteran investor’s advice is to invest in futures contracts of, for instance, sugar. Or one may consider investing directly in plantation, like sugar cane plantations.

Although he foresees a climb in prices of agricultural commodities, he isn’t bullish on other commodities, like base and precious metal. “I own some gold but I am not buying gold now… I expect gold prices to go down in the next two to three years. I am waiting for the opportunity to buy gold, silver at cheaper prices later,” said Rogers.

With the belief of a strong rebound in prices of agricultural commodities, Rogers concurs with the investment strategy of taking an overweight position in such commodities over equities and bonds. “US equities and the European stock markets are at their all-time high … I won’t put my money there,” he quipped.

That said, he highlighted that while equities in the West are hitting record highs, some markets in Asia, for example China, are 40% below their all-time high, while the Japanese market is almost 50% below their record high. “I am still looking for shares to buy in China and in Japan,” he added.

- Source, The Edge Markets

Sunday, February 4, 2018

Jim Rogers on The Future of Money

Jim Rogers shares his thoughts on cryptocurrency, the world economy and the upcoming financial crisis; as well as what you can do to prepare for it.

Wednesday, January 31, 2018

Jim Rogers Honest Opinion About Cryptocurrencies

Famous investor, Jim Rogers gives his honest opinions about both Bitcoin and other Cryptocurrencies. Is he a supporter of them? Does he see them re-surging higher?

- Video Source

Sunday, January 14, 2018

Jim Rogers: I Have Never Seen Anything Like Bitcoin

Famed investor and best-selling author Jim Rogers says that he has seen a lot of bubbles in his career, but that Bitcoin is in a league of its own. 

"There have been plenty of bubbles I have seen in my life but this one is a little strange, because at least when the dot-com bubble was around, those were companies that said they had a business," Rogers explained.

- Source, Kitco News

Tuesday, January 9, 2018

Jim Rogers: Catastrophe and Opportunity in 2018

BullionStar is proud to present our exclusive interview with the legendary American investor, Mr. Jim Rogers. In this exclusive interview, Mr. Jim Rogers shares his perspectives on the global economy and on gold. 

The interview touches on the potential catastrophe in the global economy and the opportunities it brings, the importance of acquiring physical gold and silver for insurance, Singapore being one of the best countries to acquire bullion and much more.

- Source, Bullion Star