Legendary investor Jim Rogers recently spoke to Commodity Online (India) and shared his investment outlook for China and India. According to the commodities portal this morning:

Global market meltdown, recession and bankruptcy fears and dipping profits of companies are wrecking major economies in the world these days. But ace commodities investor Jim Rogers continues to be very be hot on China.

“China is a country I am very hot on. I believe that Chinese economy will overtake the US economy, and China has the best investment potential in the world today,” Rogers, author of such famous books like Hot Commodities and A Bull in China, told Commodity Online.

The CEO of Rogers Holdings pointed out that three billion people living in Asia, most of them in India and China, will drive demand for commodities in the coming years, and added:

Asia is fuelled by massive investment and growth. And in Asia, China is the hottest destination. So I continue to look for investment opportunities in China.

Photo By Benjamin Earwicker, stock.xchng

However, the former partner of George Soros does not share the same level of optimism for India when talking about its investment potential. He said:

I am excited about India as a travel destination. For an investment proposition in India, I would think twice.

According to Commodities Online’s George Iype, Rogers’ caution stems from existing political/bureaucratic hurdles, such as the Indian government’s decision to prohibit futures trading in specific commodities, as well as serious infrastructure challenges. The Singapore-based investor noted:

Plus, the infrastructure in India continues to be bad compared to China. In China, truck drivers drive at the speed of 70 kilometers per hour. In India, they can drive only at a speed of 20 kilometers because the roads are so bad.

Source:

“Jim Rogers: Hot on China, cold on India”
George Iype
Commodity Online (India), July 18, 2008

This post is filed under Commodities, Emerging Markets, Infrastructure, Investment Outlook, Jim Rogers, Natural Resources, Transportation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.