Jim Rogers: Japanese Stock Market Is Still Down 70%, Be Careful With US Stock Market, Follow Chinese Government Spending (Video)

Jim Rogers was featured on Reuters TV on January 17, 2014. Watch the full segment below. He thinks Japanese stocks are still cheap relative to U.S. stocks, you should follow Chinese government spending, but be careful with stocks when central banks pull back their stimulus (watch the Federal Reserve specifically).

The Japanese stock market is down 70% from its all time high. America is at an all time high. Normally you're better off buying low and selling high. Mr. Abe has no constraints on him, on his money printing or his spending. And Mr. Abe recently as you may know passed a law making it tax free for Japanese to invest in the stock market. Now I've been investing a long time Tara, and every time a country does that people invest...

But he said central banks could spoil the party in stocks if they get serious about pulling back their stimulus (the Fed continues to taper QE). He thinks stock markets could fall by 10-20%, but then central banks would "get scared and print more." He said the biggest risk right now is "madness" because of all the debt and money printing. On China, he said to follow Chinese government spending. Makes sense.

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