With the Dow and S&P 500 at all-time highs, Jim Rogers, famed investor and author of Street Smarts: Adventures on the Road and in the Markets, tells The Daily Ticker he is staying far away from U.S. stocks and looking for opportunities in markets that are beaten-up. In the accompanying video, he talks about why he likes China (down 65% from all-time highs) and Russia ("probably the second-most hated stock market in the world” after Argentina).
Looking at the big picture, this week's optimism about capital market reforms in China seemed to encourage investors and outweigh any concern stemming from the referendum on independence held in two regions of Ukraine.
Enthusiasm around China came after the State Council reiterated its desire to liberalize finance in areas such as IPOs and limits on foreign investment -- even though some of these measures were originally announced months ago.
Rogers says he is buying shares in China for the first time since 2008 given authorities' desire to open the economy more, “especially in finance."
He says he's not buying much in China though, because of the country's "big debt problem" -- his concerns stem from China's shadow banking system, specifically.
When it comes to Russia, the country's markets have been more than rattled by the crisis in Ukraine, with the main stock index falling 10% in March and the ruble losing 9% against the dollar in the first three months of the year.
Rogers says he bought more Russian stocks during the turmoil in Crimea and is interested in buying more.
You're "supposed to buy when there is blood in the streets," he tells us. "In Rusia, figuratively there is blood in the streets."
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