With the Dow and S&P 500 at all-time highs, Jim Rogers, famed investor and author of Street Smarts: Adventures on the Road and in the Markets, tells The Daily Ticker he is staying far away from U.S. stocks and looking for opportunities in markets that are beaten-up. In the accompanying video
Enthusiasm around China came after the State Council reiterated its desire to liberalize finance in areas such as IPOs and limits on foreign investment -- even though some of these measures were originally announced months ago.
He says he's not buying much in China though, because of the country's "big debt problem" -- his concerns stem from China's shadow banking system, specifically.
Related: How a former English teacher is about to become one of the richest people in the world
When it comes to Russia, the country's markets have been more than rattled by the crisis in Ukraine, with the main stock index falling 10% in March and the ruble losing 9% against the dollar in the first three months of the year.
Rogers says he bought more Russian stocks during the turmoil in Crimea and is interested in buying more.
Why?
Concerns about a Chinese hard-landing set off by Beijing's efforts to deflate the credit bubble are making headlines again.
Rogers told us that we shouldn't be very concerned about the slowdown in the Chinese economy. However, he does worry about China's debt at the local levels.
Business Insider: What worries you the most about China right now?
Jim Rogers: The high levels of debt artificial liquidity all over the world.
All the money printing in the developed world is causing distortions everywhere including China. How concerned economic slowdown in China? India's government has accused global investment bank Goldman Sachs of interfering in the country's domestic politics after it raised market ratings citing "optimism over political change".
Commerce Minister Anand Sharma said Goldman's latest report where it suggested the Hindu nationalist Bharatiya Janata Party (BJP) could topple his ruling Congress party in 2014 polls "made Goldman's credibility and motives highly suspect".
Russia and China have just signed what is being called "the gas deal of the century"
Russia and China have just signed what is being called "the gas deal of the century", and the two countries are discussing moving away from the U.S. dollar and using their own currencies to trade with one another. This has huge implications for the future of the U.S. economy, but the mainstream media in the United States is being strangely quiet about all of this.
JR: Not much. The government is and has been trying to cool real estate. On the other hand, the Plenary Session in November decided to emphasize several sectors over the next decade or so. Those industries will be doing better no matter what happens in the world. So some will be improving; some declining. The government is trying to cool real estate so I would avoid [that].
JR: Few seem to understand the historical significance of what is happening there. E.g. Gordon Chang has been writing books and articles since 2001 predicting the collapse of China and the disappearance of the Communist Party. Jim Chanos has been predicting the collapse of China since 2009 saying it will be "1000 times worse than Dubai". [I explained at the time that showed no understanding of Dubai or of China.] Many in China do not fully understand either. China Disrupts Google Search and Gmail Ahead of Tiananmen Square Anniversary
Google: "We've checked extensively and there's nothing wrong on our end."
As the US was rising to its power and glory during the 19th Century, we had a horrible civil war, 15 depressions human rights, little rule of law, periodic massacres in the streets, etc., etc. yet we still became the most successful country in the 20th Century.
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%.
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