“Eventually, the market is going to say: ‘We don’t want this, we don’t want to play this game anymore, & we don’t want your garbage paper anymore’” – Jim Rogers
Legendary investor Jim Rogers has seen more market ups and downs than most people alive today.
And he has successfully made money – a LOT of money – in the process.
But given today’s macro-environment, he’s more concerned about the market’s future prospects than he’s ever been before. In fact, he confidently predicts we will experience a massive economic and financial correction that will result in the biggest bear market of our lifetime.
Too much debt. Rising inflation. Currency debasement. Malinvestment. Central bank intervention. Geopolitical stress. The current macroeconomic environment has it all.
Rogers predicts collapse will begin in the weaker countries/companies first, and then cascade it way towards the US, eventually plunging the entire system into deep recession, if not a downright Depression.
Here in Part 1 of our interview with Jim, he explains how bad he thinks things will get and why. Using his international viewpoint, he also unpacks China’s future prospects given its current challenges (including Evergrande) and the potential for greater competition from an opening of commerce between South and North Korea.
And in Part 2, Jim offers his advice to prudent investors looking to survive the coming bear market he predicts, and provides his outlook on a number of different commodities, including oil, uranium, farmland and precious metals.
“I caution all of you, it’s been 11 years since we’ve had a serious bear market… and I would suggest to you that maybe next time when we have a serious bear market it’s going to be the worst in my lifetime,” Rogers previously told an international forum hosted by Russia.
Reflecting on the piling-on of more and more debt by policymakers to paper over every crack in any economy or market, Rogers previously noted that “eventually, the market is going to say: ‘We don’t want this, we don’t want to play this game anymore, and we don’t want your garbage paper anymore’.”
And when that happens, Rogers warns that central banks will print even more and buy even more assets.
“And that’s when we will have very serious problems… We all are going to pay a horrible price someday but in the meantime it’s a lot of fun for a lot of people.”
Global investor Jim Rogers co-founded the Quantum Fund, a global-investment partnership. During the next 10 years, the portfolio gained 4200%, while the S&P rose less than 50%. Rogers then decided to retire – at age 37 – and has been sharing his wisdom with investors ever since, as well as having some pretty amazing life adventures.