Reuters, 5 March 2008:
- 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.
Comment I made in Some Humble Suggestions:
3 comments:
I believe Temasek already know that they will lose money but chooses to "ride it through" - opportunities for Temasek to enter into the US banks probably does not come too often.
Is the right time for the entry? No idea. But what I think is that they made a conscious decision to enter despite the potential losses in the short term for fear of losing the entry opportunity.
Where is the balance? Haha no idea :P
Singapore might have to pay heavily for this mistake, could be the one that will wipe out years of accumulated reserve.
If like that , isnt it is unfair for the Singaporean? The gov do not consider the risk/ lost before enter ? I am strongly believe Singapore Termasek can enter at cheaper cost (mostly -20% from the original price) whereby this can save their 20% cost. In the same time, they are able to avoid from 20% lost. Anyhow, maybe I am wrong. Like usual, market has the answer. We shall not against the market answer. Thanks
Von
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