Skip to main content

Jim Rogers on FT.com

Jim Rogers joins FT.com for their "View from the Markets" interview series.

The famed Singapore-based investor discusses a number of timely issues with the FT's John Authers, so let's have a quick overview of this video interview.

On the dollar: Rogers does not deny the current strength of the dollar rally, and says he will use the interim strength to unload his remaining dollar-based assets. Still, he feels that the policies of Bernanke and Paulson will ensure the US dollar's eventual demise.

Recession: Jim feels that the current recession will be the worst since World War II, a point on which he and Nouriel Roubini seem to agree. However, unlike Roubini, Rogers feels that the policies and stimulus packages enacted by politicians and central bankers around the world will only lengthen and prolong the recession.

Commodities - bull or bear?: Forced selling of all assets has contributed to the sharp decline in commodities. Also, demand for commodities has suffered as the world slumps into a global recession. Despite these factors, Rogers sees a sound fundamental case for commodities over the longer term, and notes that commodities were first to rebound in previous recession and depressions.

China: Rogers is unrepentant for holding on to his Chinese shares and not selling as the stock market plunged in 2008. In fact, he has bought more shares in recent months. He offers, "selling China in 2008 would be like selling America in 1908". It might be a great short-term timing move, but in the long term it would seem rather silly.

Regulators' failings: According to Rogers, most of our current problems are rooted in the failings of regulators and central bank officials who encouraged moral hazard with easy money policies and a string of financial firm bailouts. We have not allowed business failures to occur in recent years, and this has prevented the economic system from cleaning itself out.

Lots more to hear in this interview. If you take one thing away from this interview, I hope it is an understanding of the futility of governments' attempts to turn back the economic tides.

As Rogers has repeatedly noted, most government interventions into the economy will only serve to worsen and prolong recessions and depressions, and lead to further problems down the road.

Thoughts, comments? Voice them here, and then head on over to our home page for more new posts.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…