Jim Rogers: Optimist about 2012 but don’t ask for after that

According to the legendary Jim Rogers, 2012 will continue being a good year for markets because the economic stimulus is still active and it’s an election year. That is why Investors should enjoy this year but after that they must move out because he is terrified what follow through in 2013. Next year economies will no longer grow on ultra-loose monetary policies and government borrowing as the CB limits are hit. In the United States and elsewhere, central banks have cut interest rates to near zero and have flooded their respective economies with liquidity to spur more growth and hiring, policies that critics brand as printing money out of thin air.

On top of monetary policy, governments have run up debts via stimulus programs, widening fiscal deficits in the process. Sooner or later, economies will have to mop up liquidity and pay down debts, which will result in economic contraction in a year or so. So Jim Roger’s advice is “enjoy 2012, because growth and rising stock markets won't last”.

"The overall situation is getting much worse because the debt is going through the roof for all of us," Rogers says. "You should worry about 2013, you should be very worried about 2014, but this year, more or less, is not going to be so bad."

Jim Rogers is an great investor, author and respected financial commentator. He is a regular guest on different TV programs like these of Barron's, FT, Wall Street Journal, New York Times, Fortune and CNBC. Rogers is the president of Rogers Holdings and Beeland Interests.

Jim Rogers and the Yen

Jim Rogers bought a lot of yens in the beginning of 2009. He was holding most of his cash in yen up until the middle of 2011 when he said: Investor Jim Rogers said Thursday that he's concerned about his long position in the Japanese yen after a recent surge in the currency. “I’m concerned. What do I do now? Obviously the yen cannot continue to be a good long,” Rogers said. “Japan seems determined to debase the yen, which they may be about to do.”

We are still not sure whether Jim holds the yens because the currency weakened already about 10% since the bottom at 75.8 USDJPY, what we are sure is that Japan is really ready to debase the currency as much as needed after the recent BOJ program to target 1% inflation and increase the bond purchase program (QE). As soon as we know more about Jim’s yen position we will let you know.

Jim Rogers is an great investor, author and respected financial commentator. He is a regular guest on different TV programs like these of Barron's, FT, Wall Street Journal, New York Times, Fortune and CNBC. Rogers is the president of Rogers Holdings and Beeland Interests.