Legendary investor Jim Rogers may thinks the markets will see an “election year” jump – he told Shanghai’s First Financial Daily in a recent interview that he thinks (read the interview here) – but the man has a significantly different view on Facebook reports CNBC.
“Reports suggest Facebook could file its papers for an initial public offering on Wednesday, one that could be the largest Internet offering ever, with the social media giant hoping to raise upwards of $10 billion,” writes CNBC. “Such an IPO would value the company at more than $100 billion.”
Rogers thinks that this timing is a smart move by the popular social networking service. “It’s been demonstrated many, many times before that sellers are usually smarter than the buyers, and they usually know when the best time to sell is, and Facebook is doing it,” he said. Rogers, who is the CEO and chairman of Rogers Holdings, said that he wouldn’t ante in the Facebook IPO because it will be too expensive. “No, that kind of stock I don’t buy. They are usually very, very expensive. A lot of people like to buy expensive stocks like that, but I do not,” said Rogers. “I am interested in technology in some shape or form, but I can’t imagine buying any of them. They are a bit hot these days and they have been for two or three months, so that’s why I am short. I don’t buy high-priced stocks.”
Speaking of the broader US economy, Rogers says that the only reason things look and feel better in the States is “because the government is throwing money at it.” Rogers said, “There is an election in November 2012. Every time there is an election, the government pumps as much money as it can so it can to win the election. Of course things are going to look and feel better because Bernanke is printing money and Obama is spending money.” He continued by saying “they want to fool all of us saps and get us through the elections,” getting as many votes as possible, “and then they’ll say we’ll worry about those saps next year.”