Renowned investment guru Jim Rogers continues to avoid investing in the UK, believing the country's "staggering" debt problems are unlikely to improve.
Rogers, who co-founded the Quantum fund with George Soros in 1970, made a remarkable 4200% over the next ten years, compared to just 47% for the S&P.
In an interview with The Telegraph, Rogers says he has no investments in the UK.
"I am put off by the gigantic debts built up in the last few years by the previous Government. The numbers are truly staggering," Rogers says.
"The UK has had a balance of trade deficit for the last 25 years which has been growing over the years. It used to rely on North Sea oil to bolster its international earnings coupled with the City of London being a financial centre.
"But as these have declined I don't see anything replacing this revenue stream. I think the balance of trade and debt levels will get worse."
While Rogers says the austerity measures announced by the Government are very necessary to avoid the problems seen in Europe, he says none of the projections show the UK achieving a surplus.
"I just see more debt down the road," he adds. "If I see something relatively cheap in the UK then of course I will buy it, but at the moment I'm doing nothing."
Rogers is also bearish on the US for similar reasons and also has no investments in the country.
"It is the biggest debtor the world has ever seen," Rogers says.
"But what really worries me is that some states, counties and cities have been or are on the verge of going bankrupt. California is much larger than Greece and we've seen the fallout from the Greek debt crisis.
"A lot of promises have been made in these cities and states from both the public and private sector and these have been papered over. Greece has been going on about its debt for a decade and people weren't paying attention. The same is happening across the US.
"The Fed has already bailed out the banks and I wonder how its finances will cope once more bankrupt states and cities approach it."
Rogers has also avoided buying equities for at least a year and a half and currently prefers to invest in commodities.
"I own gold and it is reaching an all-time high, but that doesn't mean I'm about to sell it. While now might not be the best time to buy gold, there are other precious metals that are well off their all-time highs," Rogers says.
"Silver is about 60% off its all-time high so could be a buying opportunity. Anything that is so far off its all-time high gets me interested. Platinum and palladium are also nowhere near their historic highs.
"Agriculture has been a horrible business to be in for the last 30 years, but I see some good opportunities there as the world demands more food."
Rogers has also made a contrarian move into the euro.
"When no one wants something that should be a signal to buy it. Everyone has been selling the euro so I bought some, if only for the rally," he adds.
"This doesn't mean that I think European governments have got their act together. Far from it. But the euro could go up from a rebound rally so that's why I'm interested.
"But generally I think paper money is flawed. Nearly every currency in the world is flawed, the euro just happens to be less flawed than others. I've also been buying the Danish Kroner and the Swedish Kronor but I'm not buying any more now."
Partner Insight: Dennis Hall, director and CEO of Yellowtail Financial Planning, Julia Dreblow, founder of SRI Financial Services and Frank Potaczek, head of UK proposition at Architas met in London to discuss different types of investor attitudes towards...
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