‘The best fundamentals are in commodity

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Gold the most preferred investment

: Jim Rogers became an investing legend when he co-founded Quantum Fund with George Soros in early seventies. During the next 10 years, the portfolio gained 4,200%, while the S&P went up by less than 47% and it prompted him to retire at the age of 37. His latest book A Gift to my Children: A Father’s Lessons for Life and Investing published by Wiley is a bestseller. His earlier books Hot Commodities (2004) and A Bull in China (2007) have also become reference books in the world of finance and investment. In a telephonic interview with FE’s Saikat Neogi, he shares his views on how India can become one of the most exciting economies in the world, why commodities are going to do better than stocks and the future of US government bonds. Excerpts:

Have the markets across all countries gone up too much and too fast? And do you think a major correction is in the offing?

The markets have really risen very fast. Normally, when you have such a reaction, the feeling is that a correction is just round the corner. That is how the markets work normally. It is a very powerful rally. However, it could be the beginning of a long term period of stronger stock prices. I don’t think the economy is strong enough to justify it, but then people rarely think that way. I would expect some kind of correction somewhere along the line. I don’t think the problems are over and I would not be buying shares right now.

How strong are the green shoots of recovery that we are hearing about?

Well, in some countries they are very strong and in some they are not. For example, China is doing extremely well and the US is not doing so well. In Europe, different countries are having different economic worries. Australia and Brazil are doing better.

How bullish are you on Asia? Will the continent play a major role in the global economic recovery?

I am more optimistic about Asia than the West. The big creditor relationships in the world are in Asian markets. People save a lot of money in Asia for their future and surely the continent will play a major role in the global economic recovery.

What kind of equities would you like to buy now?