The US is cutting back stimulus while Japan and the EU may be providing additional QE at some point this year. How do you see that playing out? Are emerging markets where the main risks lay?
Jim Rogers : The main risk lies with the US. The US market is near all-time highs. Emerging markets have gone down a lot already. The risk though is everywhere, including emerging markets.
What kind of triggers are you looking for to indicate that a deeper correction may be near?
Jim Rogers : A deeper correction may have already begun for all I know, though I doubt it. Usually what happens when markets peak is that you have marginal players going down first.
We’re already starting to see some marginal countries and marginal companies decline. If you look at the advance-decline statistics in the US stock market for instance – the indices are making highs but the number of stocks which are making new highs has collapsed.
When a more serious correction starts, what will probably happen is that the US will continue to cut back QE, but at some point it will cause enough pain that the politicians and bureaucrats will give in and stop any further tapering. At that point, markets will breathe a big sigh of relief, resume their climb and then it may even turn into a bubble. At that point, it’ll be the last hurrah. - in Asia Confidential – May 2014
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%.
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