7 NOV, 2012, 11.24AM IST, ET BUREAU & AGENCIES
US election results: Fiscal position will worsen, economy headed for slowdown, says Jim Rogers
The US fiscal cliff position will worsen going ahead, said Jim Rogers of Rogers Holdings to ET Now post the re-election on US President Barack Obama. According to Rogers, Obama will continue with his current policies, there will be more deficit spending which will make things worse for the US economy.
While Rogers is of the opinion that global markets have already discounted the possibility of a US fiscal crisis, he advised investors to buy metals and agriculture related commodities. "America is going to have a slowdown in 2013-14, there will be fewer jobs, more unemployment and turmoil in oil and currency markets," Rogers said.
Even though the US government is likely to come up with a 'quick' fix for the problem of fiscal cliff, Rogers feels that it will only make things worse.Asked about the possibility of a further downgrade of the US economy, Rogers said, "If you haven't already downgraded America in your mind, do so now." TheFederal Reserve will print more money, which is not good or the global economy, he said. "You should be worried, I am worried," he added.
Rogers sees gold prices going much higher over the next decade and advised buying more commodities. Even though he is short on US government bonds, has a long view on dollar right now.US President Barack Obama swept to re-election Tuesday, creating history again by defying the undertow of a slow economic recovery and high unemployment to beat Republican foe Mitt Romney.
Obama became only the second Democrat to win a second four-year White House term since World War II, when television networks projected he would win the bellwether state of Ohio where he had staged a pitched battle with Romney.
http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/us-election-results-fiscal-position-will-worsen-economy-headed-for-slowdown-says-jim-rogers/articleshow/17126214.cms
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