The veteran investor sees more trouble ahead for the world economy, and claims he is mainly holding short positions in stock markets.
Jim Rogers, Chairman of Rogers Holdings and a famed investor, says he sees more trouble ahead for the world economy in the next few years, and is shorting shares in various markets.
"I mainly short shares around the world," says Rogers. "I have shorted American technology companies, I have shorted European stocks and shorted emerging market stocks."
Rogers made the comment while talking to China Money Podcast, a top-rated audio program focusing on investing in China.
Long known as a China Bull, Rogers turned pessimistic about China’s economic future in light of the on-going economic malaise in the U.S. and Europe. "I don’t see a resumption of the bull market in many places in the world until we have the next economic problems in the US, which will be fairly soon," says Rogers.
Having moved to Singapore in 2007 to be closer to the investment opportunities in China, Rogers warns investors to be cautious on China’s property bubble. But he also points out that investors should differentiate China’s property bubble with that of the U.S. "China’s property market has a price bubble, but not a credit bubble the US had," says Rogers.
The outspoken author of a number of best selling books, including A Gift To My Children, is a firm believer of the Chinese currency’s long-term potential. "The Renminbi will go massively higher over the next few decades," says Rogers, who goes on to warn U.S. politicians, who have repeated blasted China for manipulating the RMB, to be careful of what they wish for.
"Manipulation is the wrong world. (China) has a managed float. Once the Chinese currency is freely convertible and freely traded, you are going to have a lot of people leaving the U.S. dollar and going into the RMB. Then the U.S. is going to lose its status as the world’s reserve currency."
Though the intellectually intense investor believes that China should allow the RMB to rise faster against the dollar, he says it is China’s currency, and China should be the one making the decisions.
"If someone called up the American government, and went into the press everyday and said to America this is what you have to do with your currency, America would be furious. America would be shrieking, yelling and probably dropping bombs on that country," says Rogers.
Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.