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As often happens, Jim Rogers is investing in places that most others will not dare to go.
Right now, Rogers likes several markets others are running away from – but his current favorite is Russia.
Russia? With all the tumult going on with Ukraine that has sunk the Russian ruble and tanked Russian stocks?
"That sounds wonderful, doesn't it?" Rogers told Maria Bartiromo on her "Opening Bell" program on FOX Business today (Tuesday). "I know your parents taught you to buy low and sell high. Russia is hated. It's probably the second-most hated after Argentina. It's got vast natural resources. It's got a freely convertible currency. I don't see any reason not to step in where there's blood in the streets."
Money Morning Chief Investment Strategist Keith Fitz-Gerald agrees with Rogers. In fact, Fitz-Gerald was urging investors to consider Russia more than two months ago.
"Don't get me wrong. I don't think Russia will be a cake walk," Fitz-Gerald said. "But there's going to be tons of opportunity, too. Even if you're early to the trade, the upside is hundreds of percent here. Despite short-term momentum against it, the country has significant potential."
Buying when things look their worst is just a good way to lock in some future gains, he said, "because prices often move much higher when things simply become 'less bad.'"
Figuring out how to play Russia is a bit more complicated. Jim Rogers said he owns shares of the Moscow Stock Exchange (MCX: MOEX), although buying it is a bit tricky for most U.S. investors because the shares only trade on the Moscow exchange itself.
Rogers said he owns Aeroflot (MCX: AFLT), which also trades on the Moscow exchange, as well as some ETFs he did not name. One ETF that exclusively tracks Russian stocks, however, is the Market Vector Russia ETF Trust (NYSE Arca: RSX).
Rogers also talked about two other little-loved countries where he's buying right now…
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.
TRADERS CAN MAKE MONEY, IRREGARDLESS, BUT NOT INVESTORS
I think its folly to advise average investors to go into a single country like Russia where Rule of Law is nonexistent and corruption widespread. Right now, its Rule By Putin. Moreover, if you talk with native Russians ( immigrants) you will find out that Russia will always be an unpredictable place for investors and foreign businesses ( BP, EXXON, etc.).
Let me put it another way: When CEO Bob Dudley of British Petroleum (BP) said he was going to invest directly in partnerships in Russia, Oleg L., a Ukrainian-born Physical Therapist (PT) said in response: " I'm selling my BP stock". Russia is a terribly unpredictable place where the terms and conditions regularly change and where the ruling Oligarchs simply don't abide by contracts.
I agree with Bradley. I like Jim Rogers, but I think he's dead wrong about Russia. They may have vast natural resources, but no country prospers in the long run when their growth relies on selling those resources to foreigners. Even in the short run, capricious leadership, rampant corruption and a lackadaisical work ethic will limit gains. Russia has great potential, but for the average investor right now, it's a sucker bet. The blood in the streets is likely to continue to flow for many years to come.
Even with a intelligent sounding name,bad English prevails. Get with it Bradley.