This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
The world will be closely watching as a historic summit between US President Donald Trump and North Korean leader Kim Jong-un takes place on Tuesday 12 June in Singapore, to discuss nuclear disarmament. North Korea has already taken steps to denuclearize by ending nuclear and long-range missile tests, and the question is whether the meeting will lead to further dismantling. Jim Rogers, legendary investor and chairman of Rogers Holdings, spoke to IG ahead of the summit and said he is ‘very, very keen to invest in North Korea,’ adding that ‘there will be great fortunes made in North Korea once this opens up’. Rogers clarifies that he is unable to invest in North Korea at the moment but said he thinks North Korea today is where China was in 1981.
Recession could be ‘in the next year or so’
Roger’s view on the economy is that the next recession could potentially start in ‘the next year or so’, and argues that ‘it may have already started’, citing woes in Argentina and the Indian banking sector. On the equity market, Rogers said he is the ‘world’s worst’ at short-term predictions. However, he said he is optimistic on certain stocks, including shares in China, Russia and Japan. When it comes to the US market, Rogers said he doesn’t ‘particularly like buying things at all-time highs’ adding that he prefers to ‘buy low and sell high’.
Rogers is bullish on Russia
Jim Rogers has reportedly bought rouble bonds following the imposition of Russian sanctions this year, betting that they won’t weigh on the country. Rogers tells IGTV that he does not believe in the effectiveness of sanctions, particularly in the long term. He said ‘Russia is hated, the markets are down, the Russians have very little debt, huge natural resources, they are opening up more and more’.