Big-name investor Jim Rogers warns ‘worst’ bear market of his life is coming – Reuters
Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, has warned that more bear markets are ahead and the next one will be “the worst” of his life. Noting that many stocks will drop 90%, he pointed out that investors will lose a lot of money.
Jim Rogers says the ‘worst’ bear market of his life is coming
Famed investor Jim Rogers warned of an incoming bear market that will be “the worst” of his life in an interview with Kitco News, published last week. Rogers is the former business partner of George Soros who co-founded the Quantum Fund and Soros Fund Management.
Citing that we are somewhat in a bear market at the moment, he predicted the worst is yet to come, warning:
More bear markets are coming… The next one will be the worst of my life.
While explaining that in 2008, “we had a problem of too much indebtedness”, he pointed out that indebtedness has exploded since then.
“Debt, oh my God, look out the window, debt has skyrocketed everywhere, so the next bear market must be horrible,” he said. “How can this not be an awful bear market…I mean, the United States has increased its debt several times since 2009. Japan, oh my God, they can’t even count the debt in Japan. In many countries of the world, the debt is only increasing more and more… 2008 was because of too much debt, it is much worse now.
Many stocks will drop 70%, 80%, 90%. Of course it will happen. I do not know when.
“It’s been 13 years since we’ve had a big problem and it’s the longest in American history,” he noted, adding that “it’s already behind on a historical basis.” .
He went on to detail: “We have very high valuations, we have mind-boggling debt, we have a lot of new investors coming in. It’s not my first rodeo. I saw this movie. I know how it works. They will all lose a lot of money. I hope I’m not one of them.
Jim Rogers on the US dollar’s loss of dominance
Rogers also reiterated his view that the US dollar will lose its dominance, saying “the Russian-Ukrainian war accelerated it.”
The seasoned investor described: “The world’s international medium of exchange is meant to be neutral – anyone can do with it what they want. But, unfortunately, Washington is changing those rules. Washington says well if they don’t like you, you can’t use the US dollar, and people say “wait a minute, an international medium of exchange is supposed to be neutral”. That’s not how it’s supposed to work.
He claimed that the US government has shown that they will “take your money away” if they don’t like you. “A lot of people have had their assets seized by the United States because they don’t like them,” Rogers pointed out, adding:
Many countries, even our allies, are now looking for something to compete [with the U.S. dollar] because it could happen to them, you know, all of a sudden Washington could say you’re done.
Rogers also commented on bitcoin, confirming that he did not buy any BTC. He reiterated his view that if cryptocurrency succeeds as a currency, governments will ban it because they don’t like competition.
What do you think of Jim Rogers’ warnings? Let us know in the comments section below.
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