Legendary investor Jim Rogers, author of A Gift to My Children: A Father’s Lessons for Life and Investing, was on CNBC yesterday commenting on the European bailout situation, China and his current investment outlook.
Rogers repeated much of what he has said in the past. Specifically, governments cannot solve a debt crisis with more debt and countries should be allowed to go bankrupt.
Rogers stated there was an economic downturn in 2002, then a worse recession in 2008 because the debt was higher; now the debt is “up to the ceiling” and the recession in 2013 to 2014 will be still worse.
Rogers said he wouldn’t short the banks because they were all down too much. He said he was short European indexes.
Rogers was asked to comment on Donald Trump’s assertion that Obama went to the Saudi Arabians and asked for a favor in reducing the price of oil in order to aid his re-election bid. Rogers laughingly said he doesn’t take his advice from Mr. Trump and added that China and India are slowing down. Rogers said he did agree with Trump that over the next decade the price of oil, “will go through the roof.”
When asked if he would buy natural gas now, Rogers said if was buying energy today he would invest in natural gas.
Rogers said there were no stocks he could think of buying now. He added that he was short stocks and long commodities along with certain currencies.
Regarding China, Rogers said they have been cooling their economy for three years and should continue to until “inflation is completely demolished.” However, Rogers jokingly said he doesn’t have to answer to mobs in the street and the Chinese appear to be loosening up. A slowdown in China is like a boom anywhere else, Rogers remarked.
The interview continued with Rogers commenting on the prospect for QE3 (“printing more money is not good for anybody”), his view on whether Obama wins the election, and his current position on gold.