Legendary Investor Jim Rogers Is Long On The Dollar In The Short

David Cumming, Aviva Investors’ chief investment officer for equities, last year witnessed turbulent times for UK equities but he remains positive about the market in which he has a personal as well as a professional stake. Get our insights on managing your money and understanding the markets straight to your inbox. Given that we invest our clients’ money for the long-term , we would be foolish to think that there will not be a recession or market correction within any client’s investment journey. We expect and accept these periods of higher volatility but make sure our clients’ personal liquidity and portfolios are positioned to weather them. With so many moving parts, predicting accurately what will happen to both the global economy and financial markets over the next two to three years is impossible.

At some times in history, the financials types have been in charge; at other times in history the people who produced real goods have been in charge. The key of course is to figure out what’s coming next and go there. Keeping up to speed with the issues that could affect your investments is important for all smart investors. Read our latest articles to discover topical economic and market insight, investment ideas, and some of the trends which are shaping the world today. Tax rules can change and their effects on you will depend on your individual circumstances. The FTSE numbers you read each day simply show how share prices are performing but ignore dividends.

“When I was a professor , I explained to the students that they had to understand the numbers if they were going to start making investments,” he notes. These journeys helped Rogers to further expand his grasp on how the world works making his investment insights highly sought after, despite his retirement.

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Jim Rogers, legendary investor and chairman of Rogers Holdings, spoke to IG ahead of the summit and said he is ‘very, very keen to invest in North Korea,’ adding that ‘there will be great fortunes made in North Korea once this opens up’. Rogers clarifies that he is unable to invest in North Korea at the moment but said he thinks North Korea today is where China was in 1981. To help you make a good choice, our sister site – MyWalletHero, has reviewed and ranked some of the UK’s top share dealing brokers. In this FREE STOCK REPORT, The Motley Fool UK’s Managing Director Mark Rogers and his analyst team just revealed what they believe is a “Top Growth Share” that they think savvy investors should buy today, while they still can. “When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime,” he warned. So between shortages of supply and money printing, if you want to be in the dynamic parts of the world economy, don’t get an MBA and go to Wall Street, go and get a farming degree and move to Asia. Justin, we have huge shortages developing in agriculture and great fortunes are going to be made by the people who address those problems.

jim rogers recession

The Financial Ombudsman Service and Financial Services Compensation Scheme may consider certain investment related claims. Please refer to FOS and FSCS for up-to-date information, including eligibility criteria. The 75-year-old US investor Jim Rogers made his gloomy prediction after the rout resumed on Wall Street, knocking nearly 4% off the S&P500 and pushing leading shares into correction territory with a 10% fall in the past two weeks. In order to read or download investment biker around the world with jim rogers pdf ebook, you need to create a FREE account.

Heres How Id Invest In Uk Shares In A Stocks & Shares Isa To Get Rich

That said it would be foolish to exit markets on these factors alone as you could have argued these points for the last few years. Below is a list of Jim Rogers – related headlines from 2011 to 2017. ‘The economy will not be as strong as the markets because there are too many problems,’ he said.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. Three months after Rogers told Opto this, the European ETF market collapsed. According to data by Morningstar, ETFs across the eurozone saw record outflows of €21.9bn in March. In the US, large-cap equity ETFs suffered €5.4bn of net outflows, while emerging market equity ETFs notched €3.6bn. I shorted oil on a Friday and it was on the weekend that Iran and Iraq went to war, so needless to say oil didn’t go down, it skyrocketed.

jim rogers recession

His outlook on the rise of passive investing is also cause for concern. “[Exchange-traded funds] are wonderful because they’re easy, and for lazy people like me they’re great, they’re going to wind up being part of the next disaster,” he says. Rogers’ understanding of global markets and economies has also led him down some unexpected avenues.

Choose your own investments with Smart Investor, or let us make the decisions for you with Plan & Invest. Either way, invest up to £20,000 per year and any returns you make are tax-free2. A crash can offer you the chance to buy investments more cheaply than before.

I hope investors are able to better understand that extreme predictions from charlatans — whether they call for a crash every year or tell you one can never happen — provide no useful value. People who are contrarians for the sake of being a contrarian will read something like this and tell me it’s a sign of a market peak. There’s nothing wrong with expressing an opinion about the markets, be it positive or negative. Sometimes uber-successful people are the worst ones to listen to for advice because they become so overconfident in their abilities. Rogers very well may be a legendary investor but that doesn’t make his crystal ball clearer than anyone else’s.

Why Extreme Market Predictions Like Those From Jim Rogers Provide No Value

That doesn’t just mean spreading your pot between cash, bonds and shares but also within sectors. If you want to keep investing in the stock market, then think about regular investing. Less of your money is at risk from a sharp fall – and if the market dips you end up buying more for your money the following month. But remember prices might rise making your future purchases more expensive and your return therefore less. But overall, regular investing removes the pain of deciding exactly when to buy. But using scare tactics to get people out of the markets isn’t helpful to anyone. Making extreme predictions about the markets comes with zero consequences because there are so many pundits these days that most forecasts are quickly forgotten.

jim rogers recession

Investors should consider whether to make alternative investments in luxury items or equity investments in the companies that make them. Although the US Federal Reserve’s recent announcement indicates it’s more focused on unemployment and economic recovery, investors shouldn’t ignore inflation.

Many of the firms that make up the index have paid shareholders dividends – a share of the profits they make. By reinvesting any dividends your money has the potential to grow more over time. But dividends depend on profits being made and when economic crisis strikes, it can affect the profits of many companies. Check that you do not have all your eggs in one investment basket.

  • Jim Rogers has reportedly bought rouble bonds following the imposition of Russian sanctions this year, betting that they won’t weigh on the country.
  • The FTSE, also knocked by events such as 9/11, declined to a low in March 2003 and took about three years to return to its pre-crash peak.
  • Hopefully, you already have a decent proportion of your pot in cash for rainy days.
  • Jim Rogers, who turned 78 this week, said the share market would eventually run out of puff, following a strong recovery since March, because of ‘staggering’ government debt.
  • The fact is we are currently enjoying the second-longest bull market in history, stock valuations are high and we are starting to see classic late-cycle signs of exuberance in some markets.

The term”‘charlatan” is perfect for the finance industry because it can attract people pretending — whether they realize it or not — to know more than they actually do. Some of the original charlatans were confidence men who would prey upon people’s misunderstandings about healthcare before modern medicine existed. There used to be traveling medicine shows where the salesperson would make promises of magic elixirs that would heal all wounds. It was only after they had moved on to the next town that people would realize they’d been swindled as these tonics were worthless forms of medicine .

Sentiment can shift, central banks can surprise and economies can falter or exceed expectations leading to a rapid change in the financial landscape for the better or worse. Mr Rogers, the chairman of Beeland Interests, said the share market would tank again once governments around the world stopped spending a lot of money to ward off the coronavirus recession.

The very next thing is the spreadsheet, going back as many years as possible into a particular company, or industry,” he says, adding that he also analyses insiders’ buying or selling of shares. Investing in depressed markets like Russia, which has low debt and a swathe of natural resources, is part of a well-oiled approach that Rogers has developed throughout his career. Since the end of 2013 to the end of last year, Moscow’s main index has climbed around 140% and was among Europe’s top-performing stock markets in 2019. In 2013, he unexpectedly turned bullish on Russia, which he called “one of the most hated stock markets in the world over the last few years”. They started the fund with the postulate that the markets are always wrong, and stunned Wall Street by returning a massive 4,200% over the next decade.

On the equity market, Rogers said he is the ‘world’s worst’ at short-term predictions. However, he said he is optimistic on certain stocks, including shares in China, Russia and Japan. When it comes to the US market, Rogers said he doesn’t ‘particularly like buying things at all-time highs’ adding that he prefers to ‘buy low and sell high’. We have taken reasonable steps to ensure that any information provided is accurate at the time of publishing. If you require any personal advice or personal recommendation, please speak to an independent qualified financial adviser.

Like his other works, Rogers outlines the benefits of embracing the simple when it comes to making money and indeed one’s way through life – work hard, learn, be patient – maxims all too often cited but rarely followed. Recession or not, investment guru Jim Rogers keeps the books coming.

The world will be closely watching as a historic summit between US President Donald Trump and North Korean leader Kim Jong-un takes place on Tuesday 12 June in Singapore, to discuss nuclear disarmament. North Korea has already taken steps to denuclearize by ending nuclear and long-range missile tests, and the question is whether the meeting will lead to further dismantling.

The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. “Many studies have shown that if you invest in the averages you’re going to do better than most investors. Just like everything else in the investment world gets overblown, once it’s successful it gets overblown.

A key part of his process in identifying a worthwhile investment is to first understand the “long-term picture”. As part of his approach to fundamental analysis, Rogers would study as many companies related to his desired investment as possible to get a better grasp of the overall industry.

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