Jim Rogers, who co-founded the Quantum Fund with George Soros, deeply disagrees with Federal Reserve governor Janet Yellen's assertion that there will never be another bear market in her lifetime. One could take place "as early as next year" and if it does, says Rogers, "it could be the worst in my life". He is particularly worried about the level of debt, "which has skyrocketed since 2008".
However, while "great fortunes can be made in a bear market selling short", he's currently long stocks because "there are still reasons to be optimistic in various markets".
He's recently bought more stocks in China, Japan and Zimbabwe. "Lots of Chinese companies are highly indebted", admits Rogers. And the strong trading links between China and America mean that "when their American customers... get in trouble, many Chinese firms will also suffer". Yet "the Chinese economy has consistently done better than the rest of the world, and will continue to do so".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, America's decision to withdraw from the Trans-Pacific Partnership means that China will dominate Asia over the next few decades.
Rogers also notes that, despite the recent gains in the Nikkei, "the Japanese market is down 50% from the all-time high 27 years ago" so it has plenty of room to rise further. Prime Minister Shinzo Abe is "doing everything to keep the market up", including persuading the central bank to "print staggering amounts of money to buy stocks and bonds". Overall, there's a strong possibility that "the Japanese market may go back to its all time high".
Finally, Rogers is "very optimistic" about agricultural investments, which "will do well even if there is a bear market".
-
Adidas, Nike or Jordans - could collectable trainers make you rich?The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
-
Early bird ISA investors flock to global funds, India and the USThere’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
