Invest in China Now for the Years Ahead


Jim Rogers Image Jim Rogers Author, Street Smarts: Adventures on the Road and in the Markets

This article was excerpted from Jim Rogers’ presentation at the inaugural World MoneyShow Shanghai in April. It is part of a special series featuring Rogers’ unique insights into China’s economic growth, how you can profit, and where you should invest.

If you’re going to invest going forward, I would urge you not to invest in bonds in China—or anywhere else.

Interest rates are going to be going much higher over the next ten to 20 years, because we’re going to continue to have inflation. It’s going to get much worse, certainly in the West and China, I’m afraid.

We’re going to have more problems going forward with inflation, and therefore, higher interest rates. Prepare yourself, because rates are going to go much higher all over the world.

If you own bonds—and I know there are not that many bonds in China—but if you own bonds, I would urge you to go home and sell them. If you happen to be bond-portfolio managers, I would get another job, because you’re at the wrong place in the wrong time.

Bull Market in Commodities
I’m not terribly optimistic about stocks in the West. I own very few stocks there. My main portfolio these days, other than China, is in commodities, because that’s where the bull market is.

The bull market started about 12 years ago. It continues because supply and demand are terribly out of balance. Many of you know we have shortages developing of everything—whether it’s oil, or whatever it happens to be. Tin, rubber, cotton, we have shortages of everything developing.