International investor Jim Rogers isn’t really impressed by the seemingly endless record-setting bull-run rally on Wall Street.
His parents taught him “to buy low and sell high,” Rogers explained to CNN Money.
“The New York Stock Exchange is making all-time highs. That does not excite me. All-time lows excite me,” said Rogers, who co-founded the Quantum Fund with George Soros in 1973.
And Rogers predicts all investors will see plenty of lows in the U.S. market because of foolishness at every level of American government.
Meanwhile, the best-selling author of various financial books told investors that “at the moment, the U.S. is the best place, the best market, Maybe not the best place to be but the best market.”
The chairman of Rogers Holdings Inc. cited a long list of global problems, including many Asian nations battling long-delayed debt problems that “have come home to roost.”
However, he repeated his mantra that a bear market is indeed going to hit America once again. And when it hits, the downturn will certainly be the worst in his lifetime.
He said there is more than enough blame to spread around. He also doubts the ongoing trade war with the U.S. and China exchanging tariff gunfire will be productive in the long run.
“The central bank (Federal Reserve) has no clue what it’s doing. The government has no clue what it’s doing. You think trade wars are good for anybody? History shows they’re not,” Rogers said.
“Trade wars have never worked for anybody. They’ve always led to problems for everybody,” he said. “So Washington is the big risk right now,” Rogers said.
“Maybe we have problems, but the problems are not because the Asians are evil,” he said.
“We have a horrible education system. We have a horrible litigation system. We spend more on medicine than anybody in the world by several factors. Our life expectancies not even the top 25. We have more basic problems than a bunch of evil Asians.”
China says it will increase tariffs on $60 billion worth of U.S. goods Tuesday in retaliation after President Donald Trump announced new U.S. tariffs on $200 billion worth of Chinese imports.
Both sides are ratcheting up tariffs and rhetoric with an American business group is warning that a downward spiral in the conflict appears certain.
For his part, Trump is defending the nation’s continuing trade deficits, arguing that he’s only “just started.”
Trump is telling reporters at a joint White House press conference with the president of Poland that, “this is a process” and that “it takes a little time.”
Trump is also complaining that the U.S. has been “ripped off” by China, the European Union and “virtually every country that it does business” with for too long.
He says he’s no longer letting that happen.
He’s also recounting his conversations with European Commission President Jean-Claude Juncker, calling Juncker “tough” and “nasty” and “the kind of guy I want negotiating for me.”
Material from the Associated Press has been used in this report.
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