July 3, 2007

Jim Rogers sold out emerging market

Jim Rogers, who predicted the start of the global commodities rally in 1999, said he's sold out of all emerging markets with the exception of China because they're ``over-exploited.''. He hope that he can buy it back in the next big correction. Jim Rogers, chairman of New York-based Beeland Interests Inc., said in an interview in Singapore on 2 Jul 2007

The emerging markets index has jumped 17 percent in 2007, but MSCI World Index only gained 8.2 percent gain.

My view is that valuations are not super-attractive as these markets have run up quite a lot. Therefore, while it is not expensive in my view, it is not cheap either, and a correction in the market is possible in the near term.

If we take a look at the STI chart, the STI has broken the uptrend line, which means that chance for a correction is getting higher. A likely situation is that the STI will trade higher to “kiss” the uptrend line before making a bigger correction down.

1 comment:

J. said...

He also predicted that the mortgage loan problem in the USA will cause world recession. It did not happen.