“A few weeks ago I invested part of his fortune in the Russian ruble government bonds. Maybe I went crazy after 47 successful years of investing, but I think that these securities will rise in price”, — said the famous American billionaire investor Jim Rogers at a meeting with journalists on Monday, March 21.
This investment means that I believe that Russia will pay its debts, the ruble rebounded from the bottom and that interest rates on Russian bonds are very attractive, explains Rogers.
He says that put on the fall of American securities and the us dollar, and the growth of some Asian and Russian securities. “Russia has already collapsed, and the U.S. market at historic highs, the Russian market now everyone hates, but everyone loves America, the idea lies on the surface — you need to buy at minimum and sell at maximum, to buy something that is not popular and sell something that everyone likes,” explains Rogers. In particular, the billionaire invested in shares of the Company and the Moscow stock exchange and, according to him, very happy with the investment.
All know the reasons why the majority of investors believes Russian paper attractive: it is the dependence on exports of raw materials, non-diversified economy, sanctions lists Rogers. “The knowledge of the reasons normally means that you are already at the bottom, before the crisis, the reasons are not know, now we have already learned about all the bad news,” says Rogers. “The Chinese say, each crisis need to see opportunities, I see opportunities in the Russian market,” he adds.
Rogers believes that the ruble has potential to strengthen: first, oil prices have begun to recover, and secondly, the Bank of Russia pursues a correct policy, which supports the Russian currency. “I’m not a big fan of Central banks, but Central Bank less bad than the rest. It would be good Nabiullina stood at the head of the fed,” he jokes.
To buy Russian Eurobonds Rogers is not going to, because I do not want to hold securities denominated in dollars or euros: the currency, in his opinion will weaken because of loose monetary policy by the fed and the ECB.