Jim Rogers, a renowned global investor, in an interview with the Economic Times (ET) of India, said yesterday that Sri Lanka is the best country to invest in the Asian region.
Answering a question raised by the ET on comments made by him recently, saying that he would invest in China and Sri Lanka, he said that if anyone wants to invest in this particular part of the world, the best place would be Sri Lanka. Because it looks like the 30-year war is coming to an end.
”Throughout history, if you go to a place after a war ends, you usually find that there are enormous opportunities if you have energy. In my view, investing in Sri Lanka in May 2009 is probably a better bet than Pakistan, Bangladesh, India or some of the other countries nearby. Let's hope the new Indian government does something. I have heard wonderful things from Indian politicians for 40 years. And rarely do they produce. It's not the first time that the Congress party has been in power. If they mean it, India's going to be one of the greatest development stories in the next 20 years. But I don’t know if they mean it.” he said.
Speaking on global economic forecasts and sudden stocks surges, he said that the market is very risky today. Mr. Rogers said that Central Banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed... so, it's going into stocks and real assets such as commodities. It's a mistake what they are doing. It's giving short-term pleasure, but there will be long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.
The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds; also, there is going to be inflation, serious inflation, as it has always happened in the past when you had governments printing huge amounts of money.
Stocks are rising even as fiscal deficit is widening. Somewhere it has to snap...
It's going to snap. Maybe later this year, maybe next year, we are going to have currency problems, even a currency crisis.
I don't know with which currency — maybe with the pound sterling, maybe with the US dollar, who knows? It may be with something none of us have at the moment. When you have a currency crisis, stocks will be affected, many things will be affected. It is not sound, what's happening out there in the world.
In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then all banks failed in the end.
They are making many of the same mistakes now. What's different this time round is that they are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time.
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