Thursday, July 21, 2016
Jim Rogers on #Brexit : Worse than any bear market you’ve seen in your lifetime
Jim Rogers | "Worse than any bear market you’ve seen in your lifetime" | June 27, 2016
YAHOO FINANCE The UK's decision to leave the European Union will lead to an economic crisis more severe than what the world faced in 2008, according to legendary investor Jim Rogers, chairman of Rogers Holdings. “This is going to be worse than any bear market you’ve seen in your lifetime,” he said on Yahoo Finance’s “Market Movers” program Monday. “2008 was bad because of debt. The debt all over the world is much, much higher now. Stocks in the US, for instance, have been going sideways for 18 months to 24 months. That’s called a distribution by many people. When you have distribution for a year and a half, it usually leads to bad things.” Rogers — who cofounded the Quantum Fund with George Soros in the 1970s — believes the “leave” movement’s victory last week may threaten the British union. While any negotiated deal may help assuage the market’s Brexit fears, Rogers foresees a “bad case scenario” where Scotland and Northern Ireland leave the UK and London’s clout diminishes significantly as financial institutions move towards continental Europe. “The UK already has huge international debts and it has balance of trade problems and budget problems,” he said. “The bear case is the pound disappears. England becomes Spain or Poland or Italy or something.” While he doesn’t see an immediate collapse of England’s economy, Rogers anticipates a long-term decline in the country’s prospects. “The deterioration will continue and make stocks go down a lot,” he warned. Brexit’s win will also embolden other countries to leave the EU and separatist movements to break up a few states, Rogers predicted. That could make the world to look significantly different in just a half a decade. Get the Latest Market Data and News with the Yahoo Finance App “The EU as we know it will not exist,” he said. “The euro as we know it will not exist. Some people leave, others may join — unlikely, but they could join. There are a lot of angry people all over the world. Look at what’s happening in America." In the UK, he added, "People are making unbelievably incompetent statements but they’re very happy to be getting out [of the EU]. They’re so angry.” Rogers said he is short US stocks but is long Chinese stocks and agricultural commodities. “These are the things that might do well no matter what happens going forward,” he explained. “These are going to be perilous times. I hope I get it right.” He also expects a tougher time for the euro even relative to the British pound, as movements in other part of the European Union threaten its foundations. Rogers is long US dollars and is less negative on the Japanese yen and the Swiss franc. “There are not many sound currencies left anymore,” he said. “They’ve all been ruined by politicians.”
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%.
Labels:Jim Rogers #Brexit
Who is Jim Rogers ?
James "Jim" Rogers was born in Oct. 19, 1942 and grew up in Demopolis, Alabama .Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendry 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%. They ran what is considered to be one of the first truly global macro hedge funds. . In 1964 he got his first job on Wall Street at Dominick & Dominick in the summer between high school and Yale University, that's how he got his first experience with stocks and bonds. He immediately fell in love with the job. After Oxford, he returned to the U.S. and joined the army in 1970 he returned to Wall Street, working again with Dominick & Dominick. That same year he joined Arnold S. Bleichroeder, where he met George Soros, and together founded the Quantum Fund. This has opened a new era of global macrotrading and inspired numerous imitations and spin-offs. In the book "Money Masters of Our Time," Jim Rogers writes about that time "the most important thing in my life was work. I did not do anything until I had completed my work." To emphasize this professional ethic , it is good to remember that he did not made any holiday for ten years. In 1980, Jim Rogers has decided to "retire" at 37 years. Since then he has spent much of his time traveling and supporting the causes of philanthropic and taking on many high profile roles in the media. However, he continues to be an active investor and media commentator