5 Thoughts On Investing From Jim Rogers (ETF TRENDS)
1. People who invest in any type of security should be thoroughly educated and interested enough in the subject that they investing in to know their way around. Otherwise, why invest? Furthermore, before seeking advice, do some research on your own so you can better evaluate that advice.
2. Diversification is overrated because you can go broke trying to diversify. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket. (For the record, we still encourage investors to remain diversified, stick to having entry and exit strategies and watch the trend lines. Diversification is your friend.).
3. Although citizens of the United States should raise their savings rate, closer to one-third of their annual income, Americans never will. About 30 years ago, America was saving about 9%-10% of its income, and then came the dawn of excess.
4. It would be better to let some of the big banks fail now, rather than wait for six or eight of them to fail at the same time. The system will recover from bankruptcies.
5. The commodities cycle has further to go. This is the only sector in the world where the fundamentals are getting better. Agricultural commodities are still the most historically depressed