Jim Rogers: A Bull in China
Spend 50 minutes in Singapore with author and adventure capitalist Jim Rogers, the Indiana Jones of Finance, as he rides his stationary bike.
Jim Rogers on China :"There is no question that China is already trying to cool things up and they should. They are doing the right thing. They have raised reserve requirements three times, they have raised interest rates, they are putting out some pretty serious measures, they are cooling off the housing bubble which has developed in urban cost of real estate in China. So yes, China is taking smart measures. It is not just China though. Australia is raising interest rates several times. We do have inflation in the world. Some countries deny it and lie about it, but we do have inflation and so people are trying to cool it off. Will that have an effective course whenever you cool off demand for anything; it has an affect in the market. Because of the commodity markets to collapse, if it does, stock markets are going to go around a whole lot more because the fundamentals are much better for commodities than they are for stocks. "
"If Europe and America slow down, that’s going to cause the markets everywhere to have an affect. Europe and America, for instance, are over 10 times as big as the Chinese market. People talk about China, people talk about India, but these are very small markets or economies compared to the major economies in the West and in Japan. So if the West slows down, of course it is going to affect everybody. I do not see the emerging markets slowing down and the West reviving because the West is so very big and the West needs most emerging markets. Most emerging markets are commodity-based economies and if the world economy does well, the commodities are going to do okay. So I do not see the emerging markets slowing down if the West continues to revive. I started selling short in emerging market index, but that’s just because the emerging markets were the ones who went up the most in the past few months. " extracts from an interview with The Economic Times
