Cautious About Stocks All Over The World

Well, mainly I am cautious about the stocks all over the world now except for a couple of places, where they are down a lot. If and when stocks all over the world go down or if and when India goes down a lot, then I would certainly re-examine India.

At the moment I am mainly looking at Russia. In fact, I am buying shares in Russia right now. Russia is very cheap compared to markets all over the world. The main problem is stocks in much of the world are up and I prefer not to buy when things are going up and I know that there are going to be some problems in the markets in the next year or two. My hope is that when problems come to the world markets, I am smart enough to buy lots of stocks. 

S&P 500 Index: Lack of Market Breath

Today if you look at the S&P 500 Index for instance in the United States, I think there are only 40 or 45 stocks that are above their 50-day moving average to use the technicians kind of talk. Everything else is in a downtrend. Definitely a lack of breath. Over 90 percent of the stocks are in downtrends, 10 percent are in uptrends but they're big companies and since the S&P 500 Index is capitalization-weighted those 50 stocks, 40 stocks, are dragging the average to all-time highs now.

A Bear Market Can Start This Year

Jim Rogers has talked with ET Markets today. The wide ranging conversation touched several different topics such as the prospects from investing in India, the outlook for the U.S. stock market, the Russian stock market and agricultural commodities. You can read the complete interview here: "Don't miss the signs like in 2008, bear market is coming, reiterates Jim Rogers"

Video: Investing Lessons

A fantastic video interview with Jim Rogers on Real Vision. 

Steve Diggle and Jim Rogers discussed contrarian investing, tape reading, how to use independent thinking in investing, the importance of experience and making mistakes as a part of the acquiring knowledge. 

My Favorite Investment Book

The book that I still to this day tell people to read is Security Analysis by Ben Graham. I read it decades ago. Short of that, The Intelligent Investor by Graham and Dodd. Graham's ideas of investing in fundamentals and cheap stocks, I realized that's the that's the kind of investor I was, that's what I loved and thought was great. So, I recommend that book when people ask me what book to read or books to read I tell them about Ben Graham.

Q. How Has Your Investment Process Evolved Over The Years?

From incompetence to competence back to incompetence. I mean, my point is that I don't spend nearly as much time on it as I used to. To be a successful investor, you really have to spend a lot of time, energy, devotion etc. I'm doing a lot of other things now. I've moved, I'm traveling a lot all over the world especially in Asia, China and Russia.  I just had a book, it was the number one bestseller in Japan. I was shocked, shocked to find out. So, I'm doing a lot of other things now and so I don't spend nearly as much time investing as I used to.

The World Economy Will Be Slower In The Next Year

The world economy is going to be very slow in the next year or two but that does not mean that crude oil supply and demand cannot get out of balance. Crude Oil will go down at times but remember, known reserves of oil are declining and have been declining for years except for fracking. But the fracking bubble has burst and so we will have declining reserves everywhere and that means that after crude oil completes this complicated bottom, crude oil will go up again.