In A Serious Panic, Crude Oil May Hit 20 Dollars

As you know, normally when prices go up, they go up too high and turns into bubbles and hysteria and when they go down, panic and fear sets in and markets overreact to the downside.

It looks to me that we are going to have an overreaction in many markets on the downside. How low can Crude Oil go? I think I have said 32 dollars a barrel last time. But who knows? If the kind of panic that we see now sets in, you pick the bottom. I do not know. I am not smart enough. People talk about 20 dollars a barrel. Why not in a serious panic? That is not my prediction but it is what some people are saying and in a serious panic everything overshoots on the downside.

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Markets: Everything Is Going To Get Smashed

It seems to be that now we are in a period where everything is going to get smashed. I have been around long enough to know that periodically we have everything going down, it does not matter if it is good or bad, everyone just throws everything out of the window because they are in a panic. It seems to me that we are in that kind of period now. These periods are not fun, many people get hurt, including me.

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Markets: My Shorts Positions Are Bigger Than My Longs

China is overdue for a serious correction in the markets. China has not had a recession for many years and that is very unusual. I own China but I have shorted other things as hedges against it. And by the way, my shorts are bigger than my longs, so its not a 1 for 1 kind of thing.

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Long China, Short Junk Bonds & Tech Stocks

I am long China and I am short American junk bonds, I am short some other American stocks, I am short the technology stocks. As you probably know there have been 4, 5 or 9 stocks in America that never go down. I am short those stocks. (iShares FTSE/Xinhua China 25 Index ETF (FXI), SPDR Barclays Capital High Yield Bond ETF (JNK))

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Markets: The Problems Are Now Hitting Us And Its Going To Get worse

The American stock market has been worse than the Chinese stock market. The Chinese stock market in 2015 was one of the best stock markets in the world. The American stock market was down last year. So it started in America and in Europe and China is catching up and its catching up in a big, big way.

My basic point is we have had a lot of excesses in the last 7 years, we have not had any major decline in the American stock market, we had staggering amounts of money printed, huge amounts of debt built up and we are now paying the price. Do not blame it on China. If you want to blame it on someone, blame it on the Federal Reserve. The problems are now hitting us and it is going to get worse.

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

Markets: It Does Not Look Good

It looks like 2016 is going to be the year that we all have to pay the price for a lot of bad policy over the last 7 or 8 years. It does not look very good. (SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares MSCI Emerging Markets Index ETF (EEM), iShares FTSE/Xinhua China 25 Index ETF (FXI))

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.

China Is My Largest Long Position

China is my largest long position. My largest positions are airlines and tourism in China and the collapse in the price of oil has been good for airlines all over the world. Tourism is booming in Asia, pollution control. I have been in Beijing 3 times in the last month and it is filthy, it is horrible! Somebody is going to make a lot of money cleaning up China.

Related: iShares FTSE/Xinhua China 25 Index ETF (FXI)

Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven. He is the author of several investing books and also a renowned financial commentator worldwide famous for his contrarian views on financial markets.