Posted on 10/24/2007 6:35:25 PM PDT by AndyJackson
LONDON (Reuters) - The United States has entered a recession, according to highly-regarded investor Jim Rogers, who told Britain's Daily Telegraph newspaper on Wednesday he was switching out of the dollar and into yen, the yuan and the Swiss franc.
The veteran investor, who predicted the 1999 commodities rally, also said he was still bullish about surging Chinese stock markets despite worries over a bubble.
Fears are growing over the health of the U.S. economy after the fallout from the subprime mortgage market crisis and the global credit crunch it triggered.
The U.S. Federal Reserve has already slashed borrowing costs by 50 basis points to 4.75 percent to try and shore up the world's biggest economy and is widely expected to lower interest rates again next week.
"The US economy is undoubtedly in recession," Rogers told the Telegraph in Hong Kong in an article published on its Website.
"Many parts of industry are actually in a state worse than recession. If it were not for (Federal Reserve Chairman Ben) Bernanke putting huge amounts of money into the market, the stock market would probably be down much more than it is."
Rogers, who co-founded the Quantum Fund with billionaire investor George Soros in the 1970s, said it made sense to desert the dollar.
"All other things being equal during the next six months, that's the way I will go," he said. "But if the Swiss franc goes through the roof, I probably won't put money into the Swiss franc."
And he dismissed worries for now that surging Chinese equities had formed a bubble.
"It's not a bubble yet -- if it goes past 9,000 in January I'll have to sell. Bubbles always end badly," he said. "I do not want to sell Chinese stocks. I want to own them forever and I want my four year-old daughter to own them."
ping
“highly-regarded investor Jim Rogers”
By whom? He seems like a fruitcake to me.
Jim Rogers is not omniscient and invincible. This is just one opinion. It’s possible the U.S. could slip into a recession, I agree, but I can’t imagine we’re in one already.
alternative analysis: if he says he is getting out, he wants to scare you out.
Bowtie alert.
Not only is he getting out, he’s actually moving to Asia.
Jim Rogers is, with Soros, one of history's most successful investors in the world's financial markets. His own bank balance, among other things says he is highly regarded.
Again?
He’s already cleared out? I hadn’t heard. The last thing I read was his intention to move to Asia — probably to be closer to his money.
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What State do you live in? Here in Michigan this seems like old news.
Ah yes, steady on through the turbulent waters, permanent new highs in the market, just a little correction, bottom feeders rushing in to rescue us from the 3% downturn - and all that rot.
Yes it is only one opion, though from one of the world's most successful actors on his market "opinions."
This is all probably true, e.g., the start of the recession will probably have been realized to have begun in Q4'07. It amazes me how free-thinking people begin seeing everything as political, and respond to news as all left-wing MSM theme-driven, when maybe only 95% is.
He has no “integrity” about the US. His concerns are with the markets and money. That’s his sole area of expertise.
Rogers is another criminal manipulator. His wish is the world’s command.
well, first, neither his, nor Soros's personal integrity has anything to do with this article, merely their financial acumen. Second, Rogers was an investment partner, not a political comrade in arms.
Here in Michigan this seems like old news.
You should ask your governer to raise taxes. That always helps!
Well, he should be highly regarded. By his banker, at least.
And he wants you to be highly regarded by your banker, too. That's why he is telling you exactly what he is buying and selling. So that you will do it, too. He is so cool.
We can go through these economic cycles or we can adopt something like central planning. The socialist system would have prevented the housing bubble because most people would be sharing an apartment with two other families.
That is what you call someone who takes the other side when a government manipulates its currency to an unsustainable level in the market.
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