Jim Rogers: Long China, Short U.S. Junk Bonds

Jim Rogers, Chairman of Rogers Holdings provided some insight on the markets and global economy for the new year on the FOX Business Network.

Regarding China’s slowing economy, Rogers said he believes “Economies are slowing everywhere, China’s the second largest economy in the world so it qualifies as a part of everywhere.  But you know, last year the Chinese stock market was one of the strongest in the world, so it certainly deserves to be down this year.  It was much stronger than the U.S. last year.”

Rogers also discussed where he is investing his money right now.

“Well I’m not really putting my money, I’m mainly watching, I’m short the U.S. as I’ve discussed with you all before and I’m long China. I’m looking for maybe more shorts in junk bonds, I certainly would like to short more junk U.S. bonds and I’m looking for opportunities.”

Rogers continued by saying: “I’m not shorting treasuries, I’m shorting junk, maybe I should be shorting everything but I’m shorting junk because the spreads got so narrow for a while that if there’s going to be problems they’re going to show up first in the junk bond market, later on we should probably short all bonds.”

In addition, he talked about commodities as an investment vehicle.

“I prefer agriculture but I have for a while; oil seems to be making a complicated bottom. I’m not a technician but I know how they think and when lots of bad news and oil or something does go down then it may be making a bottom.  There’s been plenty of bad news and yet oil doesn’t make new lows so it may be in the process of making a bottom.”