Jim Rogers: Veteran American investor Jim Rogers has advised first time investors to be cautious. He said that you learn as much as you can, because when you learn what is going on you will get worried and when you are worried you will try to protect yourself. The best way to protect yourself is to buy what you know.
Commodity will perform well ahead
In a report in the Economic Times, on fears of a setback from central banks, Rogers said that once the war stops, the market will pick up and we don’t think central banks are going to be so aggressive on interest rates for some time. . Then the central bank will say wait a bit, now inflation is coming and then they will start raising interest rates and then stocks will enter a long bear market but commodities will perform well because there will be shortage of supply.
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Printing of money has to be done on high demand
On the outlook for demand for lithium and copper due to demand for electric vehicles, Jim Rogers said, “Electric cars have a higher use of copper and lithium. So when you have shortage and high demand at high prices and then you have to print money which creates concern among people about the value of money.
On the outlook on bond yields, he said that the bonds are definitely around a ‘bubble’. Interest rates have never been so low in the history of the world. Never before has so much money been printed and borrowed by the government and central banks. “I won’t buy bonds unless there is a special situation,” Rogers said.
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US market has boomed for 12 years, but now the bad phase will come
Regarding the stock market, Rogers said, the US stock market has remained bullish for 12 years, which is the longest rally in US history. “We were in a big bull market and that doesn’t mean it can’t continue for another 12 years, but it never happened,” he said. In my opinion there will be inflation, interest rates will go up, stock prices will go up significantly because the enthusiasm is there and this will lead to the bear market, which will be the worst phase of my life.”
Things will get worse from 2008-09
He said 2008-09 saw a huge bear market due to heavy debt. There is still a lot of debt around the world. So the next beer market will be pretty much the beer market. He said, “I am not trying to scare you or I am just telling you some facts. This time the loan position is worse than in 2008-09.
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