Jim Rogers expects a multi-asset bubble to burst and the American economy to run into trouble.
George Soros’ cofounder hopes to profit by shorting the “Magnificent Seven” stocks at the right time.
Rogers touted gold and silver, warned the inflation threat isn’t over, and slammed the Fed.
Jim Rogers expects asset prices to plunge and economic disaster to strike — and he plans to profit by betting against stock-market darlings like Tesla and Nvidia when the time is right.
“Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble,” the veteran investor and travel author told Soar Financially in a recent interview.
Rogers has dumped many of his stocks and bonds in anticipation of a painful slump, but he’s “not shorting yet because often at the end there’s a blowoff and things get really crazy,” he said.
He flagged “warning signs” of an approaching collapse, including a handful of stocks dragging the major indices higher this year, and newbie investors boasting to all of their friends about how easy it is to make money trading stocks.
The markets guru, best known for cofounding the Quantum Fund and Soros Fund Management with George Soros, said he’s itching to bet against the “Magnificent Seven” stocks — Apple, Alphabet, Amazon, Microsoft, Meta, Tesla, and Nvidia.
“When the market comes to an end, the last high flyers are the best shorts,” he said. “The stocks that have done extremely well and are very expensive — that, I hope, is where I’m smart enough to short next time around.”
Rogers, 81, also predicted the US economy would run into trouble soon as a result of its ballooning debt pile.
“I would suspect that next year things are not going to look as happy,” he said. Rogers noted he wasn’t sure if a recession or mild downturn lies ahead, but he’s “worried” that there hasn’t been a prolonged economic slump since the 2008 financial crisis, and global debt loads have ballooned since then.
“The next problem has to be the worst in my lifetime because the debt is just unbelievable,” he said.
Rogers advised people to own precious metals, which tend to retain their value better than other assets during periods of panic.
“Everybody should have some silver and gold under the bed,” he said. “Look, all of us peasants know, when there’s a serious catastrophe, you better have some gold and silver in the closet, so I do.”
The “Adventure Capitalist” author also predicted inflation, which has cooled significantly in the past year, would reaccelerate to painful levels. Moreover, he accused the Federal Reserve of having no idea what it’s doing, and dismissed all but a couple of the central bank’s leaders over the last century as clueless “bureaucrats and academics.”
Rogers has a wealth of experience and a deep understanding of financial history, but it’s worth pointing out that he’s been predicting the worst downturn of his lifetime for several years now, yet both markets and the economy have defied his grave warnings.
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