International investor Jim Rogers urges savvy investors to avoid the European and U.S. stock markets because of the volatile uncertainty and to pour cash into Russia, China and Japan.
He explained to Fox Business Network that U.S. and European markets are essentially stuck in the mud and drifting at a stalled momentum. They aren't worthy of any spare cash a savvy investor might have burning a hole in their pocket.
“These markets are all depressed compared to history,” he said of the American and European markets.
Meanwhile, China and Russia are creating a robust agricultural industry.
The Russian economy is getting better and sanctions have created a “whole new industry,” he said.
“They’ve forced together with the Asians. Agriculture is booming because nobody can sell to them and they can’t buy from us. So their agriculture is booming. Chinese are everywhere,” he said.
Rogers, who co-founded the Quantum Fund with George Soros in 1973, said he’s invested in individual shares and Russian government bonds, FBN reported.
“Their yields are very, very high. You can get 10% in Rubles and in my view the Ruble has stabilized so it’s a lot better than 2% in America,” he said.
In his opinion, the Japanese currency is more valuable than Europe’s.
“There’s a lot of money there, [in Japan], gigantic amounts of money,” he said. “It’s not good for Japan long term but the stocks are cheap and the government is printing and spending huge amounts of money and it’s going into the stock market.”
For his part, Mikhail Khodorkovsky, a former oil magnate and current political foe of Russian President Vladimir Putin, told Newsmax TV that investing in Russia is impossible using standard methods of forecasting because the actions of meddling politicians and bureaucrats are hard to predict.
“You're playing in a game in which the outcome depends on one individual human being. You can play this game with relative confidence if you've got direct access or you're one step away from direct access by having access to someone that's very close,” he said in an interview with Newsmax TV.
If friends can’t help, “you're going to have to play in the corruption game … In either case, it's only a very small circle of people that can play this game. If you're outside that small circle, even just a little bit outside, you're playing a game in which forecasting, predicting is impossible.”
(Newsmax wires services contributed to this report).
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