Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Thursday, May 21, 2009

The Stock market will Collapse says Jim Rogers

Don’t be fooled by the 30 percent-plus rally over the last six weeks says wall street king Jim Rogers.

Equity prices are overvalued , he added.

I’m not buying shares,” Rogers told CNBC yesterday . “The bottom will probably come later this year, next year, who knows when.”

And the reason why the stocks will fall is Because governments have "flooded the world with money" he explained .

"In the United States and other countries, the problem is too much consumption and too much debt", Rogers eadded. But governments and central banks are trying to solve that problem with more of the same.

This “defies belief" and won’t work, he says.

"I mean … you give me five or six trillion dollars, I'll show you a very good time, there's no question about that."

you should invest your money in commodities not stocks said Jim Rogers.

"Fundamentals for General Motors are not getting better. Fundamentals for Citibank are not getting better” he points out.

I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop."

Rogers’ favorite commodities include the agriculture sector gold and silver , although he prefers silver to gold .



Jim Rogers Prefers China, Sri Lanka to India for Investment


By Chen Shiyin

May 21 (Bloomberg) -- China and Sri Lanka are better investment opportunities than India even after the Congress party’s biggest election victory in two decades, investor Jim Rogers said.

India’s benchmark Sensitive Index, or Sensex, jumped a record 17 percent on May 18, causing a trading halt, on speculation Prime Minister Manmohan Singh’s victory will enable him to accelerate economic reforms.

“I’ve heard the same thing for the last 30 years,” Rogers told an Economist Conferences forum in Singapore today, saying he’s skeptical of Singh’s pledges. Still, India will be “the next great investment” if Singh sticks to his commitments, Rogers said.

This week’s gains drove the Sensex to a 42 percent advance for 2009 to date, in line with the Shanghai Composite Index’s 43 percent climb on optimism China’s 4 trillion yuan ($586 billion) stimulus plan will bolster the economy. Sri Lanka’s Colombo All- Share Index jumped to a seven-month high today as the central bank raised its forecast for economic growth following the end of a 26-year civil war.

“You’ve got the wind in your face doing business in India, you’ve got the wind in your back in China,” Rogers said, adding that he sees “great, cheap” opportunities in Sri Lanka because of “dramatic” changes in the country after the end of the war.

Rogers is chairman of Singapore-based Rogers Holdings and the author of “A Bull in China: Investing Profitably in the World’s Greatest Market.

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Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
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