Jimmy Rogers: "SELL BANKS & BUY SUGAR!"
Investor Jim Rogers says sell Wall Street banks
Thu Jul 5, 2007 6:43AM EDT
By Jan Dahinten
SINGAPORE (Reuters) - Fund manager and investment author Jim Rogers said he was selling stock in Wall Street banks because of a likely housing market slump and suggested buying sugar as a way into commodities.
Rogers, who co-founded the Qantum hedge fund with billionaire investor George Soros in 1970, is a long-time commodity bull and believes that fast growth in Asia, especially China, makes the region more attractive to investors than the United States or Europe.
"Financial companies, stock brokers, investment banks -- I am short. I am short financial services companies, mainly in America. I am short (U.S. home funding firm) Fannie Mae (FNM.N: Quote, Profile, Research)," he told reporters after a speech to investors, adding that America's financial sector offered "the best" short selling opportunities available.
Investors have been increasingly nervous about U.S. financial stocks as the market for risky, or subprime, mortgages faces a possible crisis due to rising defaults and repossessions.
"The problems with the housing market have a long way to go in the United States. Probably more so than in any other country. But the excesses in the world economy are on Wall Street: investment bankers. Those guys are making vast fortunes, that's not the way the world works." |
