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Jim Rogers: Forget India, try Myanmar or North Korea for next EM bonanza
September 24, 2013, 1:01 PM
Bad times are coming for India, says Jim Rogers. So where does the high-profile investor suggest for the next emerging-markets gold rush?
You should get on the next plane you can and head to Myanmar or North Korea maybe Angola, Rogers told BBC Radio 4 reporter Simon Jacks on Tuesday.
In those Asian countries in particular, there are extraordinary things happening positive things happening, he says.
All those countries could do with a boost. Myanmar the former Burma is ranked among the 10 worst economies in the world (Angolas on that list too), while North Koreas unstable currency is only one of the factors making it tricky to invest in the Hermit Kingdom.
His advice looks a bit offbeat, given Rogers has been snapping up commemorative gold coins from North Korea, in an apparent bet the country will collapse and the value of the coins go up.
Rogers was actually on the BBC to explain why hes been saying the wolf is now at the door in India. Turns out its down to debt, deficits and red tape.
The debt-to-GDP now is up over 90%. Studies show that when you get that deeply in debt, its very difficult to move forward at a rapid rate, he says. Theyve got balance-of-trade deficits theyve got all sorts of deficits there.
Plus, the serious problems facing the country are pretty much self-inflicted, Rogers believes.
In 1980, India was much, much more successful than China. Since then, Chinas run circles around them. Did you do it to India, did I do it to India? No. The Indians did it to themselves. [Theyre] full of bureaucracy, full of crazy regulations and controls. Their currencys not convertible its a mess.
But even if things do turn out for the worst, Rogers seriously doubts Indias malaise will spread to the rest of Asia and set off a 1998-style emerging-market crisis. Thats because the other leading economies there China, Japan and Taiwan, for instance are all creditor nations, with huge money in the bank, he says.
Indonesias got problems. Malaysia, Turkey there are other countries in Asia that have big problems. But theyre also huge, huge asset savers.
Rogers, who moved to Singapore to be closer to the Asian action, says he would live in China if it wasnt so polluted. But that drawback is a chance for investors, hes been repeatedly saying.
Somebodys going to make a lot of money cleaning it up, now the Chinese government and the Chinese citizens know that its terribly ******, he says. For the next 20 or 30 years, huge amounts of money are going to be spent, and therefore, profits made.
So investors should look to the companies that specialize in Chinas particular problems with air, soil and water pollution.
Its a huge mess. Mao-Tse Tung really ruined it in many ways.
Jim Rogers: Forget India, try Myanmar or North Korea for next EM bonanza - The Tell - MarketWatch
September 24, 2013, 1:01 PM
Bad times are coming for India, says Jim Rogers. So where does the high-profile investor suggest for the next emerging-markets gold rush?
You should get on the next plane you can and head to Myanmar or North Korea maybe Angola, Rogers told BBC Radio 4 reporter Simon Jacks on Tuesday.
In those Asian countries in particular, there are extraordinary things happening positive things happening, he says.
All those countries could do with a boost. Myanmar the former Burma is ranked among the 10 worst economies in the world (Angolas on that list too), while North Koreas unstable currency is only one of the factors making it tricky to invest in the Hermit Kingdom.
His advice looks a bit offbeat, given Rogers has been snapping up commemorative gold coins from North Korea, in an apparent bet the country will collapse and the value of the coins go up.
Rogers was actually on the BBC to explain why hes been saying the wolf is now at the door in India. Turns out its down to debt, deficits and red tape.
The debt-to-GDP now is up over 90%. Studies show that when you get that deeply in debt, its very difficult to move forward at a rapid rate, he says. Theyve got balance-of-trade deficits theyve got all sorts of deficits there.
Plus, the serious problems facing the country are pretty much self-inflicted, Rogers believes.
In 1980, India was much, much more successful than China. Since then, Chinas run circles around them. Did you do it to India, did I do it to India? No. The Indians did it to themselves. [Theyre] full of bureaucracy, full of crazy regulations and controls. Their currencys not convertible its a mess.
But even if things do turn out for the worst, Rogers seriously doubts Indias malaise will spread to the rest of Asia and set off a 1998-style emerging-market crisis. Thats because the other leading economies there China, Japan and Taiwan, for instance are all creditor nations, with huge money in the bank, he says.
Indonesias got problems. Malaysia, Turkey there are other countries in Asia that have big problems. But theyre also huge, huge asset savers.
Rogers, who moved to Singapore to be closer to the Asian action, says he would live in China if it wasnt so polluted. But that drawback is a chance for investors, hes been repeatedly saying.
Somebodys going to make a lot of money cleaning it up, now the Chinese government and the Chinese citizens know that its terribly ******, he says. For the next 20 or 30 years, huge amounts of money are going to be spent, and therefore, profits made.
So investors should look to the companies that specialize in Chinas particular problems with air, soil and water pollution.
Its a huge mess. Mao-Tse Tung really ruined it in many ways.
Jim Rogers: Forget India, try Myanmar or North Korea for next EM bonanza - The Tell - MarketWatch
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