 "Jim Rogers")
Legendary investor and chairman of Rogers Holdings, Jim Rogers, has little good to say about either candidate running for the US Presidency, but he continues to bet on Republican Donald Trump as the next President.
In an interview with ETNow, Rogers highlighted the changes that the market might see if his prediction were to come true. Here are his observations on key issues:
Trade wars, economic stability
If Trump were to become the President of the US, he would take the country towards bankruptcy, and there might even be trade wars, Rogers told ETNow. Trump would go for a trade war, which would make the US dollar go up at least for some time, but it will eventually lead to bankruptcy, Rogers observed.
The fate of the country would be hardly different if Hillary Clinton became the President, he said, but concurred that the pace of decline would be slower under Clinton.
Commodity markets
Asked about commodity trade, Rogers said that oil would probably not go down, but stocks and gold might, as people would be worried about bankruptcy and war. Commodity prices have already been inflated by 50-60% at present. These might see some consolidation, he added.
On agricultural commodities, Rogers said these could either rise or stay at the same level.
Chinese market
When asked if China was a real problem for commodity bull market, and if it would play the lead role in determining commodity prices, Rogers said the US, Europe and Japan were much more important to all the market. He also said that most of the world would see economic problems in the coming years, and even China would not be spared.
Reforms in India
On how things would change for India, Rogers appreciated the Indian government’s efforts in terms of the goods and services tax (GST) and said the reforms were good. But he also cautioned that a global economic slowdown would have its repercussions for India as well.
