ET Now: What do you make of the statements coming from FOMC and the recent data from the US? By when do you expect to see a rise in interest rates?
Jim Rogers: It is clear to me that what is going to happen is that as the US pulls back (stimulus), interest rates will go higher or stock markets will go down eventually, or both will happen. Unfortunately, when that happens, people in Washington - bureaucrats, academics, etc - are going to get scared or will panic. When people call them up and tell them that the pain is too great, they are going to relent and start printing money again ... Markets will breathe a sigh of relief, they will rally, go up for a while; but unfortunately that may then lead to the last leg of this poor market because rather than staying the course - which central banks have rarely done in the past few decades - they say everything is okay, but things will just get worse.
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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