As the stock markets have been claiming new record levels, and commodities moving in a super-cycle, where are opportunities emerging for retail investors? With indications on rate hikes from the US Fed and economic data still showing weaker prints, is it time to buy, sell or hold your investments in equities as inflation is surging? These are questions that investors asking.
In a Money9 exclusive, Jim Rogers, the author of Street Smarts: Adventures On the Road And In the Markets, said commodities are the only asset class that is cheap on a historical basis right now. Edited excerpts.
What is the secret of your success?
Rogers: I knew nothing about investing when I went to Wall Street, I went there by chance and because I liked the interviewer. I quickly fell in love because he was paying me to know about the world and I realised that’s what I was interested in at that time of my life and even now. So, I was there at the Wall Street and I had a reasonably successful time. I worked really hard but I did not consider it work, I loved it.
What’s the best way to make money for an Indian investor?
Rogers: If you want to be successful, stay with what you know. Do not listen to any expert or internet. Everyone out there knows something whether it is fashion or sports or cars or something. Start with what you know and you believe can work and be successful. You must do some research about the company, its people and the competitors and perhaps then you can make an investment. You will be better at that than even me because I know nothing about that space. If I told you that you could only have twenty investments in your life, you will be very careful. If you would only invest when you know about something, you’ll be successful and rich. You might think it’s boring, but so be it. Be boring if you want to be successful.
Is the bull run here to stay or are you seeing signs of cooling off here?
Rogers: Bonds are in a bubble, bonds should have never been this expensive. Property in many places is in a bubble and stocks in many countries are getting into a bubble. The likes of Amazon, Tencent, Samsung are all rising every day. The cheapest asset class is commodities, silver is down 50% from record levels, sugar is down 70%, oil is down 50% and this is not a bubble.
With the US Fed hinting at raising rates, gold has slipped. Is it a good time to buy gold?
Rogers: 2023 is far away, no one knows what the US Fed will do. I am not buying gold and silver now, as this correction may go on for a while but somewhere along the way, I’m going to invest more in silver and commodities as I know inflation is rising and you always need to protect yourself from inflation by owning real assets.
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