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Most of the bull market heroes do not last when bear markets come: Jim Rogers – ET Auto

Electric vehicles require several times more copper than regular cars; much more lithium, lead is used compared to regular cars and if that is correct, the demand for base metals will be more.

Copper and anything that goes into electric vehicles, whether we like it or not and there are many people who do not want electric vehicles but it does not matter. They are coming,” say Jim Rogers, Author, Street Smarts: Adventures on the Road and in the Markets

Will it be silver and gold for you from here?

I own some silver and gold. You never know when you might need some silver or gold and at the moment I am not buying either. But if I were buying right now, I would be buying a lot more silver than gold because silver is down 60-70% from it’s all time high. India is one of the greatest silver and gold countries of the world. Indians probably own more gold and silver than any country in the world.

What happens to the globally linked sectors such as metals? We have had a great run year to date, but do you think that trade is now getting peaked out or challenge base metals?It looks like all of us are going to have electric vehicles. Electric vehicles require several times more copper than regular cars; much more lithium, lead is used compared to regular cars and if that is correct, the demand for base metals will be more.

Nobody has been opening copper mines for the last several years. But if we are all going to have electric cars and trucks and lorries, then the demand for base metals is going to go higher at a time when there is not going to be a lot of new supply and prices would go up.

So what could be the businesses of the future?

Copper and anything that goes into electric vehicles, whether we like it or not and there are many people who do not want electric vehicles but it does not matter. They are coming.

How do you think history will remember the current richest man on this planet Elon Musk — inventor, disruptor or someone who is very good at marketing and got rich because of storytelling?

History tells you that always after a long bull market, new heros emerge, new geniuses emerge and I have no idea whether Mr Musk is a genius or not; so far he has done a very, very good job of promoting and publicity and getting the stock up. He does not really make a lot of money making cars but he does find other ways to make money. But we will know this happens every time it is not the first time I have seen this movie. There are always new geniuses and new heros. Most of them do not last when bear markets come, but we will see.

You have said that before the bull market ends, the last leg is always the most exciting phase because that is the wild phase, that is the phase where money is made, gains are accumulated. One tweet from a promoter and the stock goes up 10%, another tweet from another promoter the stock goes up by 5%?People call their friends and say I have discovered something. It is fun, it is easy and one can make a lot of money. Then they call their friends and everybody and when you go to the dentist to have something done to your teeth, the receptionist says let us talk about the stock market. That’s what happens, everybody gets excited, new people come in. In the end, a lot of people lose a lot of money and they say I will never invest in the stock market again. But then after a few years, it happens again, it has happened over and over for hundreds of years.

Do you think global financial markets are overpriced? Are they in a euphoric territory or are they in a bubble territory?

I am going to use the American market because it is a little more neutral. In the American market, Amazon, Apple go up every day. They are wildly expensive but there are also many stocks that have not gone up a lot. In the world market, Samsung, some of the Japanese stocks go up every day. They are in bubbles but not everything. The reason I am not selling yet is because I can see that there are still a lot of stocks that have not skyrocketed. When everything sky rockets, then you know we are getting very close to the top and maybe I should get up.

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