There’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.
“Many 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, that’s why I suspect [this rally] is going to go on for a while,†Rogers said.
Investors should be wary to identify which areas of the markets are exhibiting bubbles.
“It is beginning to [a bubble] in some stocks and in other countries as well, China, Japan, but in the U.S. I don’t know anywhere where there’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 don’t know any stock market that’s a full-fledged bubble yet,†he said.
One of Rogers’ investment philosophies is to buy things that are either ignored or “hatedâ€. One such asset is the Chinese wine industry.
“Chinese wine companies recently…the virus has caused bars to close, restaurants to close, people stopped going out, that’s starting to change, I can see it on the internet,†he said. “As far as I can tell, they have good products, decent management.â€
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