Jim Rogers, Author, Street Smarts: Adventures on the Road and in the Markets, believes that the theme of 2023 will be that we would have a big rally and it would be the last rally. “The last big rally, not the last rally in the history of the world. We will have many-many out there, we will have many-many more bull markets in our lifetimes,” he said.
Rogers says that most countries have ended the long quarantine period and even China is now opening up and so the epidemic is probably behind us or soon will be behind us. “That is one reason we are having this rally now. People have started to go out and spend money and they are feeling better and that is contributing to the last rally in my view.”
He remains skeptical about India’s outperformance continuing because it has been going on so long. “There are so many new people coming into the market who think this is so much fun and so easy and whenever you hear people talking about how easy it is you should be worried.”
When it comes to asset classes, Rogers says he is mainly doing nothing right now. “I am mainly watching. I do own commodities which usually benefit when you have inflation and I have not been buying stocks. Well I bought some stocks in Uzbekistan but it is barely enough to talk about. I am always looking for opportunities but most markets are still very strong and I do not like to buy strong markets.
Agriculture and silver are the most opportune trades according to him. “Agriculture has been a disaster for a long time, maybe silver, silver is down 70% from it’s all-time high and that is obviously not a bubble. So I would say silver or agriculture.” Sharing his views on the U.S dollar, Roger alludes to the fact that the US dollar has been very strong and will have one big move up and that will be the last move for the dollar.
Rogers wrapped up by saying it is better to own cash and earn very little money than to invest in stocks or something and lose 10% or 15% or 20%. “Bear markets can be very-very destructive to people so if you are in the wrong assets and there is a bear market, you will lose a lot of money and you will wish you were in cash. So yes I know the argument is against cash but I also know the arguments for cash unless you have something else to do. If you do not have something else to do, put it in cash.”
