Why Jim Rogers quits India

"Mr. Modi ran a successful state," U.S. investor Jim Rogers told Reuters Trading India. "He campaigned for two years, saying he knew what to do. He has been there 15 months ... yet little has happened."
“I am sure Modi is a smart guy, he enjoys good press, and he makes a lot of friends for India. But I, as an investor, after almost a year-and-a-half, have decided to move on to other places, partly also because stock markets are not going to be particularly good for the next year or two,” Rogers said in another recent interview.

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%.

Jim Rogers sells India disappointed with Modi's Reforms

Jim Rogers : I did wait a little more time (after the last interaction), but now I have sold all my India shares. I did sell my India shares as I don’t see anything happening. The market was high, and investors had anticipated great things, including me—even if he (Modi) were to do things, the market had already discounted some of that because it had gone up a lot, and there was nothing new coming from Modi. You can’t just invest on hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that.  -- Rogers told livemint .com recently

 



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%.

Jim Rogers on India : You can’t just invest on hope

During your last interaction with us, the Modi government was close to finishing a year in office. You bought into India last year after the Bharatiya Janata Party’s (BJP’s) victory under Modi, and had said that you were set to take a call on whether to remain invested in India. Are you holding on to your Indian shares? 


 
Jim Rogers : I did wait a little more time (after the last interaction), but now I have sold all my India shares. I did sell my India shares as I don’t see anything happening. The market was high, and investors had anticipated great things, including me—even if he (Modi) were to do things, the market had already discounted some of that because it had gone up a lot, and there was nothing new coming from Modi. You can’t just invest on hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that. - in livemint.com

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%.

I am getting disillusioned about India, but I’ve not acted yet

I had bought shares in India—it was one of the few times I’ve done that in my life, and it was because of the new government. So far, the new government has done nothing but talk, and it is a shame because Modi had experience; he said he knew what needs to be done. He campaigned for many months saying he knows how to fix India, but he has done very little. Cleaning toilets is wonderful, but as far as building the economy or changing India (goes), he has not done very much. I still own Indian shares, and I wonder if I should continue holding, because, after a year of no action, you begin to wonder if anything is going to happen. One might say he is getting ready to act, but Modi had run a provincial government for a long time and he knows what to do. So what is all this talk about? I am getting disillusioned about India, but I’ve not acted yet.



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%.

Jim Rogers : India must open its Economy more

What can India do to retain the interest among foreign investors?

Jim Rogers : India must open its economy more. The major problem about the economy is it's overprotected, and it's one of the reasons why India is not growing as fast as it should be. To buy Indian shares is not easy as it's overprotected and there is a need to change. The authorities should make the currency convertible and the markets open and get away with a lot of regulations and control. Otherwise, India will never live up to its potential. - in Economic Times of India





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%.

India has The Worst Bureaucracy in The World

Jim Rogers: India has the worst bureaucracy in the world. I really wish India had gotten rid of some of its bureaucratic tangle. I would really like the markets to determine what happens in India, or for that matter, in the world.

I expect sugar prices to be near their low at these prices. I expect prices will go higher. Things in India might be better if the government gets out of the sugar market.

Raghuram Rajan is one of the better central bank governors in the world. But I do not say the RBI is good. I am just saying that it is less bad than other central banks.

Will the RBI Governor cut more rates? I do not have a clue. I am sure it depends — at least partially — on political pressure. It is also going to depend on what happens with the Indian economy and with the coming budget.

I am optimistic that agricultural prices will continue to rise for some time to come. - in Economic Times of India Feb 2015









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%.

Rogers: Positive changes are taking place in India

ET Now: The new government in India has been in office for four months now. The sentiment is still going strong. What is your view on the government's performance so far? Do you see positive policy changes or reforms finally going through?

Jim Rogers: Positive changes are taking place. We all extremely impressed by the things that he has said. But unfortunately, not much has happened on the ground so far.

I actually own a few Indian shares. So, from an investors' point of view, I would say that unless PM Modi comes up with something solid pretty quickly, there is going to be a lot more disappointment and disillusion.

After all, the markets have been up a lot because of perceived changes implemented by Modi. If some of these changes do not come soon, there is going to be a lot of disappointment.

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%.

Jim Rogers : I am Buying Stock Index in India

So, what are you buying these days?

Jim Rogers : I am buying stock index in India, stock index in Russia. I am long on fertilisers and agriculture commodities as I expect prices to go up. I am overweight on the US dollar. I am overweight on Japanese blue chips as pension funds there are adjusting their portfolios. I am overweight on China as the government is emphasising its economic plans for the next 20-years.




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%.

Jim Rogers: India Should Be Tossed From BRICS

“Brazil, China and Russia could easily put something together to compete with the US dollar,” Rogers said, leaving out one component of the BRICs alliance. “The US dollar is a terribly flawed currency. I’m an American. I hate to say that. But the US has serious problems, the world has serious problems. We need something else” and potentially a competing world currency could be developed. If this were to occur, the US and its economy might be put in a straight jacket as the ability to engage in large deficit spending could be curtailed.“India and Brazil have big (national) debts. Russia is not a big debtor and has big international reserves,” Rogers noted, pivoting to Russian advantages in the interview. “Russia has a freely convertible currency and none of the others have a freely convertible currency. “If I were Russia I would be more interested in selling to Asia than South America.”- in a recent RT interview July 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%.

Jim Rogers Bullish on Water - China, India, America all have water problems

What is your outlook on global interest rates? In which direction are they likely to move?
The interest rates are going higher in most countries. Countries like Turkey, Indonesia and India had advantage of low interest rates. But these countries are going to suffer because the interest rates are going to be higher and there won't be any cheap money. Then China is also cooling off, there are many things happening around the world. The underlying situation is getting worse with interest rates going higher and printing of money.
Which are the sectors you have considered to place your bets in 2014?
I am bullish on agriculture, I am bullish on airlines. The Chinese government had said in late November that they are going to spend big money over the next 10-20 years in railroads and pollution control measures. Apart from China, there are many other countries that will spend in these sectors. Water is another sector where I am bullish. China, India, America all have water problems. - in ET Now






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%.

For Turkey, Indonesia, India, Brazil - this is not Over Yet

For Turkey, Indonesia, India, Brazil - this is not over yet - "they have serious problems and are not being resolved."

The major problem is the Federal Reserve: with interest rates at such low levels, people can borrow lots of money - and America is printing a lot of money so there's plenty to go around

A lot of countries have borrowed money at cheap rates which covers up their problems... they haven't addressed their real problems; and so now, we have a huge problem facing us and it's going to get worse.

This is not over yet - you should be worried, be careful, and be prepared

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%.

India: The Situation Is Not Getting Any Better

"I have not seen any good Indian government for a long time, as India's debt situation continues to mount, higher inflationary pressure persists and balance of trade continues to get worse." - in Economic Times


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%.

India: Not a Place For Investors, A Fabulous Country For Tourists

"India has a horrible economic system. Indian politicians are of course now talking the right concepts and are trying to implement them, but a lot goes wrong when they are put into practice and run up against the country's thoroughly anti-capitalist bureaucracy." - Business Insider




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%.

India Is Blaming Gold For Their Problems

“They've got a huge balance of trade deficit and the three largest parts are oil, gold and cooking oil. They cannot do anything about oil or cooking oil, so they're attacking gold, blaming their problems on gold. Gold has not caused their problems, gold is a symptom of their problems, but politicians are pretty simple-minded people and they look for the easy answer.” - in Mineweb



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%.

India Is Blaming Gold For Their Problems

“They've got a huge balance of trade deficit and the three largest parts are oil, gold and cooking oil. They cannot do anything about oil or cooking oil, so they're attacking gold, blaming their problems on gold. Gold has not caused their problems, gold is a symptom of their problems, but politicians are pretty simple-minded people and they look for the easy answer.” - in Mineweb


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%.

India Is Not A Place For Foreigners To Invest

You have a balance of trade problem, you have an inflation problem. India is a single best country in the world but it is not a place for foreigners to invest, at least not for me. - in NDTV



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%.

Jim Rogers Not Optimistic about India

ET Now: India has also been struggling with very high inflation and liquidity tightening by the central bank. What is your outlook on India?

Jim Rogers: I am not very optimistic about India. It is a wonderful country but has not been managed very well for decades.

JIM ROGERS : INDIA is a Mess

“In 1980, India was much, much more successful than China. Since then, China’s run circles around them. Did you do it to India, did I do it to India? No. The Indians did it to themselves. [They’re] full of bureaucracy, full of crazy regulations and controls. Their currency’s not convertible — it’s a mess."

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%.

Jim Rogers Shorting Emerging Markets like India and Turkey

Jim Rogers : I've been shorting some emerging markets like India and Turkey. If you can only visit one country in your life, I urge you, plead with you, to go to India. It's the most extraordinary country in the world for historic sights, breadth of culture, etc. But, boy, it's a hopelessly managed place. Countries like India, Turkey, Indonesia that have big balance-of-trade deficits could easily finance things when there's all this free money. But when people realize there won't always be this artificial liquidity, then there'll be problems. - 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%.

Indonesia, India, and Turkey are all suffering huge Balance of Trade Deficits

 Jim Rogers : "Look at Indonesia, look at India, look at Turkey. They have got these huge balance of trade deficits which were easy to finance with low interest rates but now they are all suffering."- in BusinessInsider


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%.