Investing.com - Famous American Businessman and Investment Guru Jim Rogers advised investment in the development of the Russian economy, Japan and agriculture, writes India Economic Times.
Analyzing the situation developing in the global market at the moment Rogers sharpens attention that while the restoration is only gaining strength, testimony of all new and new records. But he also warns about the formation of a "bubble", while prices for goods and services grow, and some assets classes establish new records.
"Yes," bubbles "begin to develop. We have no full-fledged "bubbles" except bonds. Now, I began to buy debt securities of Japan and Russia: and those and other bonds dropped sharply, but they are cheap, and they are waiting for a huge influx of funds, as well as in agriculture. I will not buy American bonds, as they are at the peak of popularity, "he said.
Another reason for which investments in Russian bonds seem to rookes justified is the situation in recently with oil. Due to extreme weather conditions in the United States began to shut off the electricity, and now there is a deficit of the proposal. Oil prices are at the highest level in recent years, mining and its reserves are reduced. Russia is rich in oil and gas, and also has the potential for the development of agriculture.
By affecting the theme of agriculture, Rogers mention that he prefers to invest money immediately into the entire agricultural index, but if investors are well versed in this topic, they should buy shares of specific companies. At the same time, he no longer believes in the "bullish trend" at the US agricultural machine, and the chain of that record reduction in the number of farmers in the country over the past 100 years is 90%, since agriculture has become almost completely mechanized. The forecast of his sufficiently sad - perhaps will never be no agricultural cycles due to weather phenomena, human factor, diseases and for a number of other reasons.
Speaking of inflation, the Guru investment focuses on much higher prices for food and fuel. At the same time, the cheapest asset remains so far, and even silver, which recently began to grow again.
- Economic Times materials are used in preparation.
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