In this piece, we will take a look at Jim Rogers’s 5 latest predictions and investments. If you want to see more predictions and investments in this selection, check out Jim Rogers’s Latest Predictions and Investments.
5. Precious Metals is a Go to Place in Dark Times
Prediction: October 2022
Unlike fiat money, precious metals cannot be printed out, therefore, will always act as a solid store for wealth. Rogers insists Silver and Gold should always be the go-to assets during dark times as they offer solid protection compared to other assets.
According to the legendary investor, Silver will always be less dangerous than other things, with Gold also being less dangerous. Given that they are not crash-proof when things are going down, timing is of utmost importance for anyone looking to invest in them to hedge against inflation.
“I’m not buying them now, because in a big collapse, everything goes down. But I probably will buy more Silver when it goes down some more,” He said
Silver remains a solid investment asset as it accrues tremendous use in addition to being precious metal. For starters, it is a key component in producing solar panels and a critical component in vehicles in electrical control units. Rising industrial use and units sue in jewelry always make it stand out.
4. Jim Rogers: Asia good, Europe bad in 2023
Prediction: January 2023
In his recent interview, Jim Rogers outlined his 2023 survival strategy for investors, advising them to stick with what they know to be successful. He emphasizes the potential opportunities in Asia, particularly China, and foresees the 21st century as the century of Asia. He cautions against investing in Europe due to the ongoing Ukraine war and perceives Europe as a high-risk region for investors. Rogers believes China and India’s economies are likely to surpass the US economy in less time, and he sees the US in a cyclical decline, expressing concerns about potential global conflict. His recommended investments include focusing on MIC (Made in China) stocks, while he suggests shorting GBP as he believes the UK faces significant problems.
3. Purchase Assets you Know and at a Discount
Prediction: January 2023
Rogers is a renowned investor, having outperformed the markets by 4,200% in the 1970s even as the market faced stagflation, a similar situation in play at the moment. The co-founder of Quantum Fund believes investors should always focus on investing in assets they know and only purchase them at a discount.
“If you want to be successful, stay with what you know,” he advised. “If you don’t know anything, do nothing. Put your money in the bank and wait.”
Rogers, who started his career as a wall street analyst before moving into commodity trading, maintains that investors should avoid reacting emotionally whenever they lose money. “My best advice to people at that stage is to do nothing, close the window, and just wait, recover. Wait until you find something that you know is going to be good. Do not get emotional.”
The remarks made at the start of 2023 came at a time when the overall market was trying to bounce back after the deep sell-off in 2022. The sell-off came amid deteriorating conditions characterized by high inflation levels.
Silver was down by 70% from its all-time high, and Sugar was down by 70%. Likewise, Gold was also under pressure, trading below the $1900 an ounce level. Traders who used the opportunity to buy the commodities at the discounted levels have generated significant returns as Gold has rallied by more than 15%, with Silver up by 30% over the past 12 months.
2. De-Dollarization Fears Are Real
Prediction: April 2023
US Dollar dominance as the global reserve currency is slowly ending. The 80-year-old market veteran believes the greenback has been on top for a long time, and now there is every reason to start looking for a competitor.
“No world currency has been on top for more than 100, 150 years at a time – they all change,” Rogers said.
Therefore, traders and investors should be extremely worried as many countries start to look for alternatives to the US dollar. The situation is being fueled by the horrendous debt problem in the US and aggressive monetary policy.
The warnings have further been reaffirmed by China and Russia joining forces to work on another currency that will act as an alternative to the dollar. The two have already joined forces with Brazil, India, and South Africa as they seek to launch a currency backed by Gold.
1. Interest Rates Will go Higher
Prediction: May 2023
The US Federal Reserve, like other central banks, has resorted to all kinds of tools in the race to bring inflation levels to pre-pandemic levels. While the inflationary pressures have declined significantly, they have reached a level where they are likely to stagnate.
Likewise, Rogers believes interest rates will continue increasing as policy officials try to do all they can to clamp down on the inflationary rescuers. How high the central banks have to go to kill inflation is still unclear as the world has never seen the debt and this level of money printing.
Rogers fears there will be trouble in all the markets amid the high-interest rate environment. Right from property markets to stock markets and currency markets, all are expected to struggle as high-interest rates take a toll. His biggest advice in such a scenario is to learn about cash or selling short to survive.
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