Monday, January 11, 2010

Jim Rogers | No China Bubble

Jim Rogers China Bubble

Jim Rogers seems to be exasperated by a number of so-called experts who seem to be calling bubbles on anything that rises in price; including countries like China.

As Rogers educated Nouriel Roubini in concerning gold lately, a bubble isn't a bubble because prices rise. A bubble in gold will happen, according to Jim Rogers, when everybody starts to start investing in gold, without knowing why. At this time very few people are investing in gold, and until that dramatically changes, there won't be a gold bubble.

Rogers maintains sometime in the next decade gold will probably hit somewhere around $2,000 an ounce.

As far as China goes, Rogers is striking out at global hedge fund manager Jim Chano, who claims China is also in a bubble, and that the bubble will burst sometime soon.

The China economy is built on a solid foundation according to Rogers, and the country is a great place to invest in.

As far a Chanos goes, who is a notorious short-term trader, you have to wonder how much of China he has shorted in a variety of companies, which is probably what caused him to make his remarks in hopes of making a quick killing.

Of course Chano may have made those trades for some time, and could be in danger of losing a lot of money betting on China being in a bubble that he thought would burst, but hasn't.

Rogers probably knows the Asian and Chinese investment sector as well as any Westerner, and if he says China's not in a bubble, I tend to believe him more than anybody else.

As far as commodities go, China seems to continue to be buying them up, but now it looks like it'll be not just for domestic consumption, but to feed the export industry, which may be starting to grow again.

Jim Rogers China Bubble Burst

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