"The company [Agritrade] is intriguing to me since it is in coal which most people don’t like ... [and] it is in Indonesia, which some people don’t like. I have learned in my investment career that if you find something that is being ignored or bad-mouthed, especially if it is cheap, you can [potentially] make a lot of money.”
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
Remember, whenever markets are going up, people ignore the bad things. You can go and say that the emperor has no cloths and people don’t care. They are so happy with all the money they are making.
There is no question that the next time the world is going to have economic problems, it is going to be the worst that we’ve ever had since the Second World War, and a lot of people are going to be very angry.
Already a lot of people are very angry—there are a lot of people who cannot get jobs, and they have been waiting angrily for what they’ve been promised.
It usually takes a year or two after the markets collapse for that anger to build up—if say the markets collapse in September this year, by the September of 2019, you are going to be having a lot of very, very angry people.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
I don’t prefer to buy when markets are at an all-time high. I don’t want to get on a moving train—when you jump onto it, you’ll get hurt. You won’t get hurt if you buy something that is ignored and sitting in the corner—you’ll not make any money for a while, but you won’t get hurt.
If .... Trump does what he says, it is good for the world, because it will revive many parts of the American economy. When people have more money to spend, they will do it... everyone will be better off for a while, and that is why the markets are going up.
Trump says he will cut taxes and that sounds very good. But how is he going to do all this? Protectionism has never been good for anybody. No one has ever won a trade war. Every one will suffer with protectionism, and if Indians cannot go to America anymore, it may be bad for Indian companies, but it will be good for India.
US Protectionism could help countries like India
The smart Indians won’t be rushing to the US any more—they will stay in India and build companies. Or maybe, they will go to China or Germany—but in the end, it will be better for India than the US.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
There are massive amounts of money around, and it needs to go somewhere, and it is going into the markets. India is not the only one going through the roof—look at Europe, America. The central banks have made a lot of free money available—Mr Trump has told everyone that everything is going to be OK, and he is come up with some policies which people think will be good such as cutting taxes and building infrastructure… That is why markets in many countries are going up—I think the party will end soon, but I am very, very bad at timing it.
Earnings Recovery
That is one of the problems—an earnings recovery has not taken place and the markets are going up. This is a problem globally because there is a lot of free money and easy money, and then there is optimism about tax cuts in the US—that is the worry for me—that all of this is not real and is based on free money.
Free money, while it lasts, is wonderful, but it always come to an end.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
