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Tuesday, 26 January 2010
Global Stocks Are ‘Vulnerable to Correction,’ Jim Rogers Says
Global equities are “vulnerable to correction” after rallying from their March lows and as governments around the world withdraw stimulus measures, said investor Jim Rogers, author of “A Bull in China.”
Global Stocks Are ‘Vulnerable to Correction,’ Jim Rogers Says
By Jonathan Burgos 25 January 2010
(Bloomberg) -- Global equities are “vulnerable to correction” after rallying from their March lows and as governments around the world withdraw stimulus measures, said investor Jim Rogers, author of “A Bull in China.”
The MSCI World Index climbed 67 percent from a more than 13-year low on March 9 as governments boosted spending and central banks cut borrowing costs to pull the global economy out of its worst recession since World War II. The gauge has fallen 4.9 percent from a 16-month high on Jan. 14.
“We’re overdue for a correction” said Rogers, chairman of Rogers Holdings, said in an interview in Hong Kong. “Stock markets around the world have been going up for the past 10 months.”
China, which led the world out of recession, has been taking steps to prevent the economy from overheating. The nation’s central bank on Jan. 12 raised the reserve requirement for banks and told some banks last week to curb lending.
“I don’t think anybody has tightened enough. I think everybody should tighten more,” Rogers said. “We have huge amounts of money printed throughout the world. It’s going to cause currency instability. It’s going to cause more inflation.
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Global Stocks Are ‘Vulnerable to Correction,’ Jim Rogers Says
By Jonathan Burgos
25 January 2010
(Bloomberg) -- Global equities are “vulnerable to correction” after rallying from their March lows and as governments around the world withdraw stimulus measures, said investor Jim Rogers, author of “A Bull in China.”
The MSCI World Index climbed 67 percent from a more than 13-year low on March 9 as governments boosted spending and central banks cut borrowing costs to pull the global economy out of its worst recession since World War II. The gauge has fallen 4.9 percent from a 16-month high on Jan. 14.
“We’re overdue for a correction” said Rogers, chairman of Rogers Holdings, said in an interview in Hong Kong. “Stock markets around the world have been going up for the past 10 months.”
China, which led the world out of recession, has been taking steps to prevent the economy from overheating. The nation’s central bank on Jan. 12 raised the reserve requirement for banks and told some banks last week to curb lending.
“I don’t think anybody has tightened enough. I think everybody should tighten more,” Rogers said. “We have huge amounts of money printed throughout the world. It’s going to cause currency instability. It’s going to cause more inflation.
It’s going to cause higher interest rates.”
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