Jim Rogers, chairman of Rogers Holdings, turned bearish on China. Keep in mind that this is a country the veteran investor loves so much that he moved to Singapore in 2007 to be close to it.
Rogers admitted recently, that he expects the U.S. and Europe to slowdown in the next couple of years, 2013 and 2014. In his opinion, when you have two of the largest economic blocks slowing down, most of China — especially those dealing with Europe and the U.S. — will also have problems.
The investor sees increasing risks in China’s real estate, as the Chinese government is reported to consider loosening property control policies to arrest further economic slowdown. Rogers is worried about the fact that Chinese government loosens interest rate and bank reserve requirement ratios too soon. The Asians did this once before, and the bubble got worse, and people will lose more money ultimately.
But Rogers sees bright spots in the Chinese economy as well. In his opinion, China is spending billions of dollars to clean up its air and water, so environmental technology and water treatment sectors will do very well.
Jim Rogers, a native of Demopolis, Alabama, is an author, financial commentator and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times, and most publications dealing with the economy or finance.
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