Views from the Investment Guru

Everybody loves to hear what Jim Rogers has to say about the financial markets. We love his straight up opinion and directness. He has an incredible passion for understanding how things work and is able to analyse from the company level, all the way up to the macro.

He presented at the recent World Wealth Creation conference and here are some of the key take-aways I was able to jot down.

On market consensus and watching for turning points:

• No – this time it is not different
• History rhymes
• Everything you think you know now, is going to change – trends and market views can and will change
• Need to be nimble, flexible and be able change course
• If you can figure out where the change is happening – catastrophe and opportunity – thats where you will make the money. Figure out who will benefit from a disaster (follow the money)

Investment rules –

• 1st rule- learn how to sell short
• 2nd – don’t follow the herd. Where he could see everone around him was bullish and it didn’t make sense…..he bought puts
• Find something cheap where the dynamic is changing and do your homework – and you should be on your way
• Don’t limit yourself to one asset class or market

Views on various markets –

• Russia – is one market where he sees positive change
• Japan – sees changes there that make it interesting to invest
• USA – has long interest rate cycles and rates are rising now. Expected to go way higher
• Fixed Income – shorting junk bonds but holding regular bonds – expects interest rates to rise
• Agriculture – positive on the space. Current prices way below historical peaks – sugar down 89% over last few decades
• Bitcoin – no (wouldn’t invest here – sees it as a bubble)