, Jim Rogers Blog: Jim Rogers Discusses Market Bubbles and One Big Regret

Friday, February 10, 2017

Jim Rogers Discusses Market Bubbles and One Big Regret

Legendary investor Jim Rogers isn't afraid of the unknown.

In fact, he made his fortune by investing where others feared to tread.

Rogers made a name for himself in the 1970s after founding the Quantum Fund with George Soros. The fund had gains of 4,200% in 10 years.

Rogers has traveled widely and is known for pioneering the boots-on-the-ground approach to investing in emerging and frontier markets around the world.

From his world travels and decades of investment experience, he has penned a range of best-selling books that blend investment insight, political commentary and travelogue. There are many lessons to be learned from these books.

In a recent exclusive interview, Rogers spoke about market bubbles and one of his biggest regrets. A partial transcript follows.

Q.: So when we look at global markets, which markets, [are those] that a lot of investors are very keen on [that may be in bubble territory]?

A.: Well, I can't think of many that people are keen on right now. America ... the S&P [500], people are keen on ... European football clubs ... that's a bubble.

American tertiary education is a bubble. Everybody thinks it's the end all and be all.

America has done a great PR job of selling its universities. Everybody knows [that] grammar school, primary school and high school are a disaster in America.

But somehow or another that translates into the fact that America has great universities. Don't ask me the logic, but that's obviously a bubble.

Hong Kong real estate, Shanghai (China) real estate ... [those] are clearly in some kind of bubble ... also, Sydney (Australia) real estate.

Bonds are obviously something that is going to cause a lot of pain to a lot of people. Bonds have been going up for 35 years, literally, for 35 years.

Now, bond markets have a habit of having long, long, long cycles, 30, 35 years. It's normal in the bond market.

At least historically in the U.S. it's been normal, but ... that's another clear bubble.

- Source, The Street