9 July 2016
Dear Fellow Investors,
On Wednesday 6 July I had the privilege of listening to Jim Rogers at a presentation at the KL Convention Centre. Jim is a famous investor and financial author who was once partner to George Soros. He migrated in 2007 from the US to Singapore and became a permanent resident where he lives with his wife and children while managing his investments.
His reasons for choosing Singapore reflects his views on world markets and the economic road moving forward.
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Investing Legend Jim Rogers with yours truly . Notice his fearless stance.
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Jim is a bull on Asia, China and commodities. His view is that China will rise and be the next big country as Europe, the UK, the US and most developed nations continue to decline. He was born in 1942 in a small farming town in rural Alabama, USA where hard work, savings, education and investment were the economic model for prosperity. This was the free market capitalist business model that made America rich and great.
The free market business model has changed. America and developed markets face bankruptcy. The new developed world model has now moved towards socialism and entitlement. These include increased welfare, government spending, increased regulation, higher taxes, debt and fiat money creation. It has resulted in slowing world wide growth, destructive wars, a migrant crises and financial market turmoil.
The recent dramatic gold/ silver price rise is evidence of the beginning loss of confidence in the socialist business model and the politicians who administer it.
Jim mentioned that savings rates in China are over 35 % of income while in the US are less than 2 %. This giant pool of savings is fuelling growth and prosperity.
The Chinese he mentioned have regular Plenary sessions to guide the economy. The most recent one in 2013 focused on the capitalist business model with the focus on building wealth via the market rather than on politicians creating wealth via government programs, printing money and giveaways.
Jim shared his portfolio: Long: Gold, silver, Malaysian plantation shares, China, HK and selected Asian shares, USD Short: S & P, Dow, UK and European markets
He feels that there will soon be a great crash and all markets will collapse. This includes, shares, speculative property, bonds, and fiat paper money. Only real assets such as gold, silver, grains, land will survive. Next comes a world wide depression.
The problem with this is that he has been saying this every year since 2008. With his 300 Million USD fortune I suppose he can wait out the drawdowns . I would rather be like George Soros who has an 8 billion USD + fortune and simply plays the trends and takes what the market offers in real time. That’s why Soros’s fortune continues to increase.
Here is some good news for our IVSA volume spread analysis group. A few years ago, I read the auto biography of Soros and it was mentioned Soros uses price and volume in his analysis.
I asked Jim about this and he confirmed it. This is from the horse’s mouth and not a third hand opinion. By the way if you gamble on horse racing and you want to know which horse will win go to the horse stable and talk to the horses.
Price and volume talk to you in their own language like the horse talking to the little girl. The price and volume language is the language of market money making- more powerful than any language on the planet.
Jim Rogers and George Soros sat side by side managing billions of funds while running the Quantum Hedge Fund.
Expect world stock markets to stabilize next week. Helicopter Bernenk is going to Japan to advise PM Abe on money printing and QE. The Bernenk is the king of money printing. The UK is considering lowering interest rates due to Brixit turmoil while the US plans to keep interest rate policy on hold. Low or no growth and market turmoil continues in Europe so expect easier money in the weeks ahead. This will benefit VSA stocks so enjoy the ride. At some point Jim will be right but not now.
Invest well and grow your wealth,
Bill
Bill
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