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Veteran investor says that’s because of more debt in system
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Rogers makes no claim to know the timing for his prediction
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Good Articles to Share
Jim Rogers Says Next Bear Market Will Be Worst in His Life
By
Updated on
Jim Rogers, 75, says the next bear market in stocks will be more catastrophic than any other market downturn that he’s lived through.
The veteran investor says that’s because even more debt has accumulated in the global economy since the financial crisis, especially in the U.S. While Rogers isn’t saying that stocks are poised to enter bear territory now -- or making any claim to know when they will -- he says he’s not surprised that U.S. equities resumed their selloff Thursday and he expects the rout to continue.
“When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime,” Rogers, the chairman of Rogers Holdings Inc., said in a phone interview. “Debt is everywhere, and it’s much, much higher now.”
The plunge in equity markets resumed Thursday, as the S&P 500 Index sank 3.8 percent, taking its rout since a Jan. 26 record past 10 percent and meeting the accepted definition of a correction. The Dow Jones Industrial Average plunged more than 1,000 points, while the losses continued in early Asian trading Friday as the Nikkei 225 Stock Average dropped as much as 3.5 percent.
Bear Markets
Rogers has seen severe bear markets before. Even this century, the Dow plunged more than 50 percent during the financial crisis, from a peak in October 2007 through a low in March 2009. It sank 38 percent from its high during the IT bubble in 2000 through a low in 2002.
“Jim has been talking about severe corrections since I started in business over 30 years ago,” said Alibaba Group Holding Ltd. President Mike Evans, a former Goldman Sachs Group Inc. banker. “So I’m sure he’ll be right at some point.”
Rogers predicts the stock market will experience jitters until the Federal Reserve increases borrowing costs. That, he says, will be the point when stocks go up again. He said he’ll buy an agriculture index today, reiterating his view that prices of such commodities have been depressed for some time.
“I’m very bad in market timing,” Rogers said. “But maybe there will be continued sloppiness until March when they raise interest rates, and it looks like the market will rally.”
(A previous version of this story corrected the quote in the last paragraph to say "sloppiness.")
— With assistance by Sam Kim
https://www.bloomberg.com/news/articles/2018-02-09/jim-rogers-says-next-bear-market-will-be-worst-in-his-lifetime
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Discussions
Be the first to like this. Showing 16 of 16 comments
JIM ROGER AND MARC FABER ARE FROM THE AUSTRIAN SCHOOL
PAUL KRUGMAN, BEN BERNANKE & MAYBE TRUMP ALSO FROM THE KEYNESIAN SCHOOL OF THOUGHTS
SO IT MIGHT NOT BE ANOTHER GREAT DEPRESSION
IT MIGHT BE HYPER INFLATION IN STEAD AS MONEY PRINTING WILL ACCELERATE
2018-02-09 16:41
before hyperinflation, must have recession first. I want to see Milo 2kg < RM15, then we talk.
2018-02-09 16:43
IN THE ADVENT OF THE MOTOR CAR
HORSE DRAWN CARRIAGES ARE FACING SUNSET
SO WITH ECOMMERCE CONVENTIONAL TYPE OF SHOPPING IS OVER
2018-02-09 16:48
YES MORE THAN THAT
NOW THE STUBBORN BOSS IS DRAINING AWAY ALL THE REMAINING WEALTH
EMPORER NERO PLAYED THE FIDDLE WHILE ROME BURNT
SO TSWC WATCHED PARKSON CASH PILE GONE DOWN THE DRAIN
2018-02-09 16:51
parkson today down almost 3% so everyday down left 33 days left become zero? sasbadi,carimin,fpgroup all down almost 8%,so left less than 13 days to live ar?
2018-02-09 16:56
clown @calvintaneng, brick-and-mortar is not over yet.
only traditional brick-and-mortar like parkson is over.
aeon/giant/tesco r still doing fine in malaysia.
now we confirm u dont understand retail as well.
so what biz sector u understand????
lol..............
2018-02-09 16:57
i think parkson can last more than a mth b4 zero, bro apolloang.
the rate of decay for parkson might be 2 mths seeing so many hardcore retail supporters it has.
lol.............
2018-02-09 17:02
so next month price become zero ar? sure tak boleh lah even PN 17 kinsteel can survive more than 1 month.parkson no loss 1 bil.what about sasbadi,fpgroup still making money and carimin just a small loss.people just sell like no tomoro,dow jones not even 15,000 yet.if mon down I will start to buy those battered stocks.....sikit sikit buy
2018-02-09 17:13
even my prolexus turn green already.....cannot close one lah.nobody knows when is the lowest.....c low buy sikit,c more low buy sikit more
2018-02-09 17:13
but I not like parkson cos post heavy losses one I no like. I prefer others.bjcock I will consider cos VT won't let it become ZERO.....hehe
2018-02-09 17:17
don't worry datuk calvin,i am like a marathon runner pacing my run.....hahaha.i only buy on the cheap.....green one or up a lot please don't tell me to chase
2018-02-09 17:19
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US debt in 2008 was 10T USD.
10 years later, in 2018, its debt doubled to 20T USD.
Why DJ and Nasdaq shot up so much?
All fueled by the extra 10T USD.
Danald Duck wanted to put 1.4T USD into renewal of US infra, that will add to the 20T USD debt.
US citizens already paid 458.5B USD interest in 2017 when effective rate was 2.3%.
Now effective rate is more than 2.7%, and it is going to move upwards if FED raise interest rate in Mac, and subsequently 2 more times in 2018.
Surely DJ will go to hell in coming one year.
QE's were easy. It pushed up DJ and housing prices worldwide.
Exit plan kills. It kills all share markets worldwide.
2018-02-09 16:36