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5 Mar 08
Investment guru Jim Rogers believes that U.S. bank stocks could fall further and predicts that Singapore’s state investors will lose money on their multi-billion dollar investments in Citigroup and Merrill Lynch.
“I’m shorting investment banks on Wall Street,” the long-time commodities bull told reporters on Wednesday at a launch event for ABN AMRO certificates linked to commodities.
“It grieves me to see what Singapore is doing. They are going to lose money,” he added, referring to investments by Government of Singapore Investment Corp and Temasek in Citigroup, Switzerland’s UBS and Merrill Lynch.
Rogers, an American who co-founded the Quantum Fund with billionaire George Soros in the 1970s, now lives in Singapore as he wants to raise his four-year-old daughter in an environment where she can learn Mandarin Chinese.
Rogers, who also writes investment books, said Wall Street had to work off 10 years of excesses and predicted that losses linked to risky mortgages will eventually spread to credit card bills, student loans and other debt.