Exclusive Interview With Jim Rogers – Part III

The Bank of England (BoE) threw a “Hail Mary” bomb over the middle yesterday…

BoE governor Mark Carney announced an interest rate cut to 0.25%.

That’s the lowest rate in the central bank’s 322-year history. But he wasn’t done nailing retirees in the solar plexus…

Carney also announced a massive plan to buy government and corporate bonds.

Of course, the London stock market appreciated the BoE rigging…

The FTSE 100 magically reversed losses for the day and shot higher once the BoE steroid injection news hit the wires…

Central Bank Hocus Pocus

Yesterday’s FTSE spike proved yet again why anyone looking to prosper in unpredictable markets should consider the wisdom of legendary investor Jim Rogers…

Here’s one of Jim’s most famous investment principles:

Markets often rise higher than you think is possible and fall lower than you can possibly imagine.

And the BoE’s latest moves prove him spot on…

The FTSE goes higher after the enormous negativity and uncertainty following Brexit? Impossible!

Market “experts” have been predicting a big FTSE decline ever since the June Brexit vote.

After an initial post-Brexit drop, the FTSE bounced back. But more recently, it looked like the expected downturn had indeed arrived…

Consumer and business confidence showed big declines recently. And the FTSE has been dropping.

But all it took was BoE hocus pocus to flip the script. Just like that, the FTSE closed up 1.56% yesterday.

To Jim’s point, markets like the FTSE can clearly rise higher than you’d ever think possible. Central bank desperation is always good for short-term fun and games.

And conventional wisdom and trading strategy simply don’t account for these outliers.

The flip side is that markets can also sink far lower than ever expected when shortsighted interventions flatline.

Think you can time when to get in and out by trying to predict insanity? Good luck. You can’t.

The most effective way to profit from chaos is a trend following approach riding price trends both higher and lower… blissfully ignorant of exact outlier timing.

Look, we can’t predict or control the future. But as the future takes shape, we can identify trends forming and ride them for the chance at huge profits. And that’s just what trend following aims to achieve.

To hear more of Jim’s investment wisdom, be sure to click on the screenshot below to view the final installment of my exclusive interview.

 

Please send me your comments to coveluncensored@agorafinancial.com. Let me know what you think of this week’s conversation with Jim Rogers.

Regards,

Michael Covel
for The Daily Reckoning

P.S. If you missed the previous installments of my interview with Jim, you can watch Part I here and Part II here.