Internationally renowned investor and "Commodities King" Jim Rogers said earlier at a summit in Singapore that he has completely cleared all his U.S. stock positions, holding only Chinese stocks and equities from another undisclosed country. He emphasized that "the next U.S. economic crisis will be the most severe in my lifetime."
●Cites the 1976 UK Debt Crisis as an Example
According to various media reports, Rogers directly pointed to America's debt issue, using the 1976 UK debt crisis as an example. He explained that, at the time, Britain's high public debt and out-of-control fiscal deficit led domestic institutions and investors to boycott government bonds, causing a collapse in government credit. He believes the U.S. is now heading down a similar wrong path.
●The Dangerous Signal: 'This Time Is Different' in U.S. Stocks
Data shows that U.S. federal total debt has surpassed $38 trillion (RM160.69 trillion). Rogers emphasized that while U.S. debt is currently denominated in dollars, which reduces short-term default risk, if its global leadership is shaken, market trust in dollar assets will rapidly unravel. He noted that U.S. stocks have been in the longest bull market since 2009. Despite the market being flooded with optimistic slogans like "this time is different," he sees the greatest danger when everyone else is cheering.
●Optimistic on China—Especially Tourism and Hotel Sectors
On the other hand, Rogers revealed that he is actively increasing his Chinese stock holdings and has invested in several sectors in China, especially favoring tourism and hotel industries. He highly praised China's "Belt and Road" initiative, comparing its impact to that of railroad construction in the 19th century, saying it is reshaping regional economic relations. He asserted that China will be the most important country of the 21st century and that children should learn Mandarin to prepare for the future world.
●Increasing Silver Positions, Waiting for Opportunities to Buy Gold on Dips
In terms of safe-haven asset allocation, Rogers has not increased his gold positions but stated that he will immediately buy should prices correct. By contrast, he is more optimistic about undervalued silver and has significantly increased his silver holdings recently, because "historical experience shows that silver and gold are the best safe havens during times of crisis."
However, Rogers frankly admitted that he still holds a large amount of U.S. dollar assets, but this is a "tactical arrangement," because when the crisis breaks out, panic will drive capital into the dollar, at which point he plans to sell at high prices and carry out asset rebalancing.