Given your concerns about artificial liquidity, what warning cues are you looking for?
Jim Rogers : I'm most concerned about currency turmoil coming. Look, the yen has
declined 25% [against the dollar] in less than a year, a staggering move
for one of the world's most important currencies. The euro is a
fabulous concept, but its execution has been bad. And the dollar is tied
to the largest debtor nation in world history.
I own the renminbi. I also own the dollar, not because I have such
confidence in the U.S., but because I've got to invest somewhere, and if
turmoil comes, people will flock to the dollar. It's not a safe haven,
but it's considered that way. I cannot invest the way I want the world
to be; I have to invest the way the world is.
I also own the Singapore dollar because I
have expenses here. Singapore has allowed its currency to appreciate as
a way to attack inflation—and it's an export economy. It doesn't have
cotton fields or oil or natural resources, and everything is imported.
The Chinese should learn from Singapore. There are 1.3 billion Chinese,
and they would be better off if its currency went up, because the cost
of living would go down. Yes, some people, like the exporters, would
have to adjust. But remember, the Japanese yen has gone up a lot against
the dollar over the decades, and Japan still has a trade surplus with
the U.S. But China does things its own way, and I think this is one of
their mistakes.- in Barron's
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.