Investing legend, Jim Rogers, says that he is not buying any stocks in China right now nor is he selling any, but says he will buy more Chinese stocks when they collapse. Stocks have doubled in 9 months. Instead, he says the best way to invest in China is via commodities.
No matter what, the Chinese will pay all their bills because they absolutely need to buy all the commodities they don't produce themselves. Cotton, Nickel, iron ore, steel, and Agricultural Commodities are among their biggest requirements.
Click to view this July 27, 2009 interview with Bloomberg.
Jim Rogers was interviewed by the Globe and Mail on July 30, 2009 and re-iterated his convictions about commodities:
So you see commodities, even after a 10-year bull run, as still offering the best investment opportunities? Isn't that dependent on a global economic recovery?
If the world economy is going to get better, commodities will lead the way, because of the shortages. I cannot imagine a better place to be. When you come off periods like this, you want to be in the things where the fundamentals are getting better – those are the ones that always lead the next bull market.
If the economy is not going to improve, commodities are still the best place to be … because governments are printing huge amounts of money all over the world.
Throughout history, when people have printed lots of money, it has always led to higher prices. Throughout history, when governments printed, the money has to go somewhere. Historically, it has always gone into real assets, as people try to protect themselves. … It's not going to go into people buying new cars, it's going to go into wheat and silver and oil first. It may go into new cars eventually, but it's going to go into real stuff first – at least it always has. I'd rather own commodities than just about anything I can think of in a period when the whole world is debasing paper money.
Source: Bloomberg, Youtube | Globe and Mail, July 30, 2009