Jim Rogers, photo courtesy of Flickr/Gage Skidmore
Jim Rogers, the Chairman of Rogers Holdings and Beeland Interests, says that the United States has hurt itself and “shot itself in the foot” by pushing Russia closer towards China during an interview with Russia’s Gazeta.ru newspaper.
Rogers explained that it’s only a matter of time before Russia becomes a major partner in Asia, which would mean that the U.S. would not receive a share of the opportunities in the Asian market.
The “U.S. simply shot itself in the foot,” he said.
Rogers said that capital from Asia will replace that from the west, as the Asian market is much larger – with 3 billion people – compared to the population of the U.S. and Europe – with a little more than 1 billion people.
“For Russia it is better to be with 3 billion creditors than 1 billion debtors,” Rogers said, adding that “all the money” is in China, Hong Kong, Japan, Taiwan, Korea, and Singapore, whereas the largest debtors are in the U.S. and Europe.
Rogers says that the dollar is in a terrible situation as the U.S. national debt and trade deficit are huge.
“If we simply write out on paper the facts that lie behind the ruble and the dollar, without naming the currency, then everyone will want to buy rubles and no one will buy dollars. But as soon as you name them then, of course, people buy dollars,” Rogers said.
He added that he hopes to get rid of dollars before a collapse happens. “Everything seems perfect, until one day it ceases to be so. It was the same with Britain, France, Spain and Greece. Often stocks manage to go up for a few years before hitting bankruptcy.”
Concerning the current ruble situation Rogers said that “Russia has low debt, unlike Greece, as well as convertible currency, which is quite unique for the new markets. So fundamentally its position can be called normal. It is being pressured by lower oil prices, but as soon as the black gold finds the stable point the situation will improve for the ruble.”
Rogers admits that he was bearish on Russia for forty-seven years, but in 2012 he changed his view to bullish and has become increasingly more optimistic.
He said that he invests in both Russian stocks and bonds and has increased investment following the plunge in oil prices which caused the ruble and many stocks to sink heavily.
Rogers said he has recently bought shares of a Russian chemical company called PhosAgro and has joined its Board of Directors. He said he has also increased his stake in the Moscow Stock Exchange and owns shares of Russia’s largest airline, Aeroflot.
“Local stocks remain cheap, and I expect to earn,” Rogers said.
Discussion
No comments yet.