(Kitco News) – According to investor and best-selling author Jim Rogers, markets, especially stocks, still have to push higher before the bullish rally finally ends.
Rogers told Michelle Makori, editor-in-chief of Kitco News that markets are currently pricing in an eventual reduction in the conflict in Ukraine.
“Let’s say you calm down. I would suspect that the markets, especially the stock markets, would go through the roof because then people would [breathe] a sigh of relief and central banks won’t be as aggressive in raising interest rates as they were three months ago, and then the markets will skyrocket. We will have a great rally, probably the last rally. This has been going on since 2009, so that would probably be the last rally, it would be a wonderful rally. And if that happens, I hope I was smart enough to sell that rally. I haven’t sold yet, “he said.
Rogers co-founded the Quantum Fund with George Soros in the early 1970s and throughout the decade to the early 1980s, the fund returned 4,200%. During that decade, US inflation was double-digit and the world saw similar geopolitical turmoil with the Vietnam War and then the OPEC oil crisis.
“There have been many opportunities that we have taken advantage of around the world and we use a lot of leverage. I don’t use a lot of leverage now and I hope I don’t need it. These were some of the reasons we were successful, but we also saw inflation. . Inflation was very clear to me then, and it is clear to me now with all the money printing. So if you can find assets that will rise in price during inflation, you will make it successful, “he said.
Rogers previously argued that Russian and Chinese stocks were one such example of “hated good”.
“Usually, if you buy hated goods, you will be successful over time,” he said. “I went to Venezuela last year … it was a disaster. America imposed sanctions so I can’t invest in Venezuela, but this is the kind of place. And, if you understand correctly, when there is a disaster. , you will probably make it successful in a few years. “
On Russian stocks, moral objections aside, Rogers would still buy in that market now, if that market were available to foreign investors right now.
On China, Rogers said reunification with Taiwan is only a matter of time.
“If I were in China, I’d just wait. China has been around for thousands of years. They know patience better than most people. So if I were in China, I’d just say I’ll wait, don’t worry. Looking at a map, [Taiwan’s] it will be part of China again someday, “he said.
US meddling in foreign affairs has forced Russia and China to forge stronger ties, Rogers noted.
“Russia and China are getting closer and closer, but we are forcing them to do so. Whether this will lead to war in Asia or not soon, I don’t know, I hope not, but if I were China and never wanted to go to war on Taiwan, this would be more or less the best time to do it because the rest of the world is distracted by other things. I’m not suggesting they will, I’m just saying if I was thinking about the war with Taiwan, “he said. “Washington is pushing [China and Russia] closer and closer and we are fighting with both of them. “
Furthermore, China is likely to be arming the Russians for war in Ukraine, he said.
“I’m sure somewhere in Russia is receiving weapons from China, just as Ukraine is receiving weapons from the United States and Europe, whether it is above or below the edge, it is happening and will happen more and more with ours. friends, “he said.
However, given that US stocks have not yet collapsed, investors have not considered the possibility of a major war in the Asia-Pacific region, Rogers said.
During times of war, commodities perform well, Rogers said.
“Raw materials, throughout history, raw materials go through the roof where there was a war,” he said.
In particular, Rogers recommends agriculture as an investment game right now.
For more information on assets that perform well during escalating geopolitical tensions, watch the video above.
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