Tuesday, February 23, 2016

15 to 20 percent annual corrections are part of a healthy market

The world is going to have problems. In America that used to be the main market, it has not got a serious stock market set back in the past 6-7 years. That is very unusual. Normally, market corrects 15-20 per cent every year or so. We haven’t had corrections like that because of the artificial money printing by the central bank. We are going to have a big problem next time we have a setback and it is coming in 2016-2017.

Tuesday, February 16, 2016

Blame the Government for money printing and massive deficit spending

[The US stock market] had virtually no significant corrections in seven or eight years, which is very unusual. That’s because of massive amounts of money printing originating in Washington, DC, and massive amounts of debt and spending, deficit spending originating in Washington, DC. And the rest of the world copied us, and now all the major central banks – Japan, Europe, and Britain – are all printing staggering amounts of money, so we have an unprecedented artificial ocean of liquidity floating around the world which has obviously gone into shares, but that cannot go on, James. We have to pay the price.

We’ve had economic slowdowns in the US every four to seven years since the beginning of the Republic; we’re going to have them again, and perhaps they’re starting. And I’m not the only one who realizes there’s a problem; the market’s getting it too. 

So if you’re looking for a single culprit, look to Washington, DC. ....we’re all going to get hurt. A lot of people have made mistakes in the last seven or eight years, and we’re all going to suffer.

Tuesday, February 9, 2016

A summer job made me discover my love for Investing

When I started working on Wall Street, I knew nothing about it and I had no money at all. I just took a summer job on Wall Street in the beginning.

Then I fell in love with investing. I thought it was wonderful. I would say I started when I was 21. I started in a small way by saving and I bought some IBM shares. I didn't know much, I thought IBM would be a great company.

Tuesday, February 2, 2016

Central Banks solution to market problems is to print money

They can talk and they can just print money. That’s all they can do. They can drive interest rates lower by buying assets, which is what they’ve been doing, but none of that is good for any of us, cause it’s all just going to lead to a worse disaster.

Jim Rogers

Warren Buffett

Nouriel Roubini