It has already been one year since Western countries applied a second wave of sanctions against Russia which targeted the country’s biggest banks, defense and oil companies in addition to high-level officials. These sanctions have also led to Russian companies being unable to access capital markets across Europe.
One billionaire investor believes this will not end well, particularly for the United States.
Jim Rogers, chairman of Rogers Holdings and bestselling author of “Hot Commodities,” spoke with Sputnik News and explained that sanctions have never really worked in the history of the world. He noted that they may cause some short-term pain, but in the long-term countries can adapt and find their ways around sanctions.
“Everyone will lose from these sanctions including America, certainly including America. And, unfortunately, Russia temporarily,” Rogers told the news outlet. “But, in the end, I’m afraid it’s going to be America, which is going to suffer the most.”
In regards to sanctions imposed against Russia, Rogers purports that Russian suppliers had a difficult time at first but Asian countries, including China, are helping correct those dislocations.
According to Rogers, Asian governments hardly paid any attention to the sanctions, and actually created a closer partnership between Russia and East Asia. This may have been an unintended consequence of the West.
Moving forward, now would be a prime opportunity to invest in Russia as well as Cuba.
“In my view, it’s probably a good time to be investing in Russia. I have invested in Russia in the last year, and I hope I can find more investments,” Rogers said. “The rest of the world has already been investing in Cuba. And now, Americans can go and invest. If you are going to do it, you better do it right now.”
Rogers made headlines in the last week after it was reported that the co-founder of the Quantum Fund exited India and sold all of his Indian shares. The reason for this is because he doesn’t think anything new will come from Prime Minister Narendra Modi.
Here is what he told LiveMint:
“I did wait a little more time (after the last interaction), but now I have sold all my India shares. I did sell my India shares as I don’t see anything happening. The market was high, and investors had anticipated great things, including me—even if he (Modi) were to do things, the market had already discounted some of that because it had gone up a lot, and there was nothing new coming from Modi. You can’t just invest on hope. Even If reforms started coming, it may not be enough to make the markets go higher, because markets have already factored it in. If the reforms are substantial, the markets may go higher. No indication of that.”
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