You’ve expressed some pessimism about the world, particularly the U.S.
Jim Rogers : Every four to seven years since the beginning of the Republic, we’ve had economic turmoil. It has now been eight years since we had our last problem. We’re overdue. Mr. Trump has sworn trade wars with Mexico, China and a few others. If that happens, it’s all over. Trade wars have always led to bankruptcies—and often have led to wars, as well.
So where do you see the best opportunities now?
Jim Rogers : Agriculture has been a disaster for 30 years, but I’m very optimistic about it. There are many ways to invest: You can buy land, agricultural products, seed companies, fertilizer, tractor companies. Farmers are getting older, and in the U.S., more people study public relations than agriculture. Therein lies the opportunity: Either it’s going to get better, or we’re not going to have any food at any price.
I’m optimistic about Russia. The Kremlin now un- derstands that they have to play by the world’s rules.
I’m also short U.S. junk bonds, because interest rates will be going higher and we’ll have a worse economy. The central banks have tried to print more money, but the market is beginning to reject it, and inflation is coming back. There is going to be a lot more debt issued in the next few years, and more bonds means higher rates.
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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