US Stocks Are Overpriced; China, South Korea and Russia Are Better Options, Jim Rogers Says
(Yicai Global) March 30 — The US stock market has become unsettling amid growing uncertainties, according to Wall Street investor Jim Rogers, who feels the American market is priced too high and has no plans to buy stocks there in the near future.
Rogers is currently more upbeat about stocks in China, South Korea and Russia, he told Sina in an interview in Beijing yesterday, saying shares there are relatively cheap.
“China is the most successful country in terms of development in recent decades,” Rogers said. He still holds many yuan assets, including shares in Chinese firms, but has no plans to sell them in the short term as he doesn’t need the money, he said.
While optimistic about the Chinese stock market, Rogers said he doesn’t directly invest in the A-share market, but instead buys H-shares in Hong Kong to invest in Chinese firms. He believes buying Chinese stocks in Shanghai is much more expensive than in Hong Kong. He has plans to invest in Tiger Brokers Co., a US stock broker in China, to make his first move into China’s fintech sector. He will be looking for more investment opportunities in China, he added.
“US President Donald Trump has repeatedly vowed to wage trade wars with China and other countries,” Rogers said. “Although nothing has happened yet, it will be disastrous once a trade war happens — there will be no winner.”
Economic measures that Trump has proposed, such as tax cuts, massive infrastructure spending and increased regulation will see positive impacts in the US but lead to problems in other countries. The accumulation of problems may lead to a trade war.
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