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Motley Fool Global Gains / GGM: Global Gains Philosophy


Subject:  Re: Investment Biker Discussion Date:  5/26/2009  4:38 PM
Author:  TMFMmbop Number:  1699 of 5166

he basically implied most U.S. investments were bad ideas as the U.S. is on the decline...

You're right that Rogers does not have a lot of nice things to say about the US. Of course, this book was written 20 years ago and we're still holding on, so take it with a grain of salt. But many of the problems he identified back then are only worse today. For example...

p.96: “The market will do the same to the United States [as it did to Zaire] if we don’t shape up, if we keep running a budget deficit and borrowing our heads off…Someday the world markets will refuse to buy more U.S. dollars and bonds. Can you blame them? Would you buy overpriced bonds and currencies?”

p.122: “In all of my years of investing, there’s one rule I’ve prized beyond every other: Always bet against central banks and with the real world…When a central bank is defending something…the smart investor always goes the other way.”

His support for free markets is, I think, generally summed up in this line:

“Is it likely a bureaucrat earning a secure seventy-five thousand dollars a year will make better judgment of what will work economically than an entrepreneur about to risk his own money, reputation, and opportunity?”

I think the two can hang together because of his belief that the US free market system is generally becoming more statis with more spending and more government control. Of course, there's an interesting argument to be made about the origins of the current US crisis.

But boiled down, I think he's pushing everyone to have non dollar exposure, and I think that's very good advice (as we've discussed in the past).

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