Jim Rogers has urged investors short the so-called FANG stocks and follow his lead in purchasing Russian assets as one of the best value calls for 2017.
Speaking in a Q&A at Skagen’s annual conference, the investment industry stalwart offered a candid appraisal of his view for the year ahead.
‘I see the most value in Russia and Agriculture. On the other hand, I recommend shorting the FANGs (Facebook, Amazon, Netflix, Google/Alphabet) in the US unless it is clear a bubble is coming,’ he said. ‘I bought more Russia recently including Russian government bonds in rouble.’
Elsewhere, Rogers reiterated his concerns over President-elect Donald Trump, having previously said the outcome would render most of the world bankrupt and only be good for wall-builders.
‘Trade wars and currency wars have always led to bankruptcy and often to real war. If Trump and others mean what they say, we are all doomed,’ he said.
‘One of the main lessons of history is that most people do not learn the lessons of history. Many who do know the lessons of history think they are smarter than history and can overpower the lessons of history.’
Commenting on macro trends, Rogers said he has faith in the long-term future of China and said people often overlook the hardships the US market faced when it was first expanding.
‘Remember the US was the most successful country in the 20th century, but as we rose, we had 15 Depressions, a horrible civil war, massacres in the streets, few human rights, etc. China will have many problems along the way just as does every individual, family, company, and country that rises.
‘China is now a huge trading country and many of its customers are having problems with more to come. When your customers have problems, you have problems so we will see more slowdowns in China in the future.’
Rogers said China also now has debt, which it has had little of for decades for historical reasons.
‘You are going to see bankruptcies in the future among those companies with debts whose customers have problems. Beijing has stated they will let them fail – unlike the West and Japan which do not let people fail.’