Famed investor looks for South Korean companies that will benefit from North Korea’s opening
Legendary investor Jim Rogers, the founder of the Quantum Fund, expected that the world will not be able to recover from the lingering coronavirus crisis in the near future.
The financial commentator based in Singapore said that the economic recovery would not be a V-shaped curve, which will see a steep upturn, or U-shaped one, which is marked by a slow upswing.
Instead, he projected the world would see an L-shaped curve because the “debt-based bubble has popped” to cause “the worst economy in his lifetime.” It is the worst-case scenario that is feared to bring about an extended recession.
“The economy is different from the market. The market is having a nice recovery now. The government is everywhere, spending a huge amount of money, printing a huge amount of money. We are having a market recovery by money printed and spent,” he said in a telephone interview.
“That is not the economy. The economy has problems and will continue to have problems for some time _ L-shape if I have to say something.”
But Rogers is looking for investment opportunities even during the economic downturn in such segments as “transportation, tourism, travel, hotel, and restaurants.”
“They have been beaten, they have been smashed. So that is where I found opportunities all over the world,” he said.
In South Korea, Rogers fixes his eyes on companies, which will benefit after the opening of the 38th Parallel, which has divided the two Koreas over the past 70 years.
“I expect that the 38th Parallel will open before too much longer, and when that does, some companies will do very well,” he said.
“Once the 38th Parallel opens, the (Korea) Peninsula will be very, very exciting. In fact, China is the most exciting country for the next century, but for the next decade or two, it would be Korea.”
The interview took place on April 20 before the April 21 news articles that North Korean leader Kim Jong-un might be in a “grave danger” after going through a previous surgery.