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Ignore Economic Data, Here’s What Matters About China: Jim Rogers

If there’s anybody who knows China it’s billionaire investor Jim Rogers.

And he told us that if you’re poring over the latest economic data out of Beijing over the week-end, you’ve got China all wrong.

“Those numbers are all made up,” he said on CNBC’s Fast Money Halftime Report. “China does it and the US does it too.”

Although Rogers ignores government data such as CPI or PPI he does watch China's economy very carefully. He puts a lot of credence behind what he sees first hand, with his own eyes – and as a resident of Singapore he sees huge opportunity.

Rogers made headlines in 2007, after he sold his NYC home and moved to Singapore because he believed Asia was on the cusp of an economic revolution as significant as the US industrial revolution of the early 20th century.

And Rogers told us his thesis hasn’t changed one bit.

“China is growing,” he assured us. “These are hard-working, energetic people who are on the rise again. Don’t get me wrong – there will be setbacks. Some China real estate may be heading for a hard landing – but other parts of the Chinese economy are going to boom."

And if you're an American investor with a long-term time horizon, he said what matters most is that China is a long-term growth story, period.

“China has 1 billion 300 million people,” he reminded. "It’s much bigger than the US both in population and land area. It’s a huge place.”

In other words, as China emerges, both the growth and prosperity it generates will be on a massive scale.

If you agree with the thesis, Rogers believes the simplest way to play it is with commodities.

“China has to buy commodities. They need the stuff and they don’t have it. If you have nickel they’re going to pay you, and pay you on time.”

If you're not someone who regularly buys and sells futures contracts, trader Jon Najarian suggested playing Roger's thesis with long positions in Agco and Deere. "Wait for a dip, then buy," Najarian said.

Read More:

What else you can learn from Jim Rogers and the way he thinks about money and investing? Click here to go to Simple Strategies Behind Supersized Successes.


Posted by CNBC's Lee Brodie

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Trader disclosure: On June 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long ONC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HYG; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Steve Cortes is long BONDS; Steve Cortes is long DEO; Steve Cortes is long SVU; Steve Cortes is short XRT V. S&P; Steve Cortes is short XLF V. XLE; Steve Cortes is short AUSSIE $; Steve Cortes is short MS; Steve Weiss is short X

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