Sept. 12 marks the first anniversary of the second round of Western sanctions against Russia, and the outcome isn't too impressive, says international investor Jim Rogers.
"Everyone will lose from these sanctions, certainly including America, and, unfortunately, Russia temporarily," he told Sputnik News.
"But, in the end, I’m afraid it’s going to be America, which is going to suffer the most."
Sanctions historically haven't been too effective, Rogers said, "especially in a place like Russia, since there are so many ways to get around the sanctions."
Russia suffered short-term pain when some suppliers couldn't sell to it, and it couldn't sell to them, Rogers said. "But those dislocations are being corrected by Asia, especially China."
With Asia ignoring the sanctions, "the major effect they're having is to drive Russia and Asia closer together and away from America," he said
Rogers says now is good time to invest in Russia. "I have invested in Russia in the last year, and I hope I can find more investments," he said. His holdings include the Moscow Stock Exchange, fertilizer company PhosAgro and the airline Aeroflot.
The MICEX Index of Russian stocks has returned 27.7 percent so far this year, while the dollar has climbed 12 percent against the ruble.
In China meanwhile, the Shanghai Composite Stock Index has plunged 38 percent since June 12, sending many investors out of the market.
But billionaire investor Wilbur Ross isn't too worried. "I just think they’re going through a little tricky period," he told Forbes.
"Let’s say that we’re right, and China is only growing at 4 or 5 percent. For a big economy, that’s a lot."
U.S. GDP increased 3.7 percent annualized in the second quarter.
China's economy officially expanded 7 percent in the second quarter, but private economists agree with Ross that the actual total is much lower.
"We got a little spoiled when they used to grow at 10 percent [until 2012]," he said. "That was never going to be sustainable forever. But unless the unemployment rate gets too bad, I don’t see China exploding. I don’t think a big depression is coming."
China's official unemployment rate is 4 percent, but some economists put the true figure at 10 percent.
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