Thereâ€™s simply too much money injected into the monetary system by central banks to allow a sizeable bear market to take place soon, said Jim Rogers, investor and chairman of Rogers Holdings.
â€œMany stocks in the U.S. are down in 2020. There are a few stocks that are going through the roof every day. Some parts of the U.S. market are developing a beginning of a bubble, but many parts of the markets are not, thatâ€™s why I suspect [this rally] is going to go on for a while,â€ Rogers said.
Investors should be wary to identify which areas of the markets are exhibiting bubbles.
â€œIt is beginning to [a bubble] in some stocks and in other countries as well, China, Japan, but in the U.S. I donâ€™t know anywhere where thereâ€™s a full-fledged bubble yet in any stock market. The bond market is in a market. The bond market all over the world is a bubble, but I donâ€™t know any stock market thatâ€™s a full-fledged bubble yet,â€ he said.
One of Rogersâ€™ investment philosophies is to buy things that are either ignored or â€œhatedâ€. One such asset is the Chinese wine industry.
â€œChinese wine companies recentlyâ€¦the virus has caused bars to close, restaurants to close, people stopped going out, thatâ€™s starting to change, I can see it on the internet,â€ he said. â€œAs far as I can tell, they have good products, decent management.â€
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