The Next Bear Market According to Jim Rogers

Jim Rogers

Gold Market Discussion

When a Legendary Investor Speaks, We Should Listen.

Jim Rogers deserves his reputation as a legendary investor.   

Right now, Rogers says the next bear market in stocks will be “the worst of my lifetime.”

Rogers knows something about stock bear markets.   The bear market of the 1970s was brutal for stocks, but during that period when Wall Street was suffering, the Quantum Fund, which Rogers co-founded, turned in a performance that was simply astonishing.  1970 to 1980 the Quantum Fund climbed an eye-popping 4,200%. During the same ten-year period the S&P 500 managed to rise only 47%. “Nobody we know has ever been right about every turn in multiple markets, but we often look to Jim Rogers for his enviable record at foreseeing the broad, sweeping turns of the markets, including the Mortgage Meltdown and the Panic of 2008.”

So why does Rogers think the next bear market will be so rough?  Here are some of his thoughts from a recent interview with Portfolio Wealth Global:

“The federal government, for better or worse, has been gigantically deficit spending.  The Federal Reserve, the central bank, has had a lot of loose money around.  So all of this money is going somewhere and it is going into the American stock market.”

“When the problems come, and they will come, I assure you, everybody is going to be looking to blame somebody.  They’ll blame foreigners, they’ll blame banks, they’ll blame rich people, they’ll blame someone.”

“The situation now is America, the United States, is the largest debtor nation in the history of the world.  Whenever that has happened historically, whenever someone gets massive amounts of debt, excesses set in and then you have a problem.  Every country in history that has gotten itself in this kind of debt situation, has had a crisis eventually or a semi-crisis.”

“So, yes, it’s coming.”   

“First of all, I should remind you we have always had financial setbacks, economic problems every five or ten years throughout history, so there’s nothing unusual about it.” 

“It’s coming again.  The next time its going to be really, really bad because the debt is so much higher now.”

“We had a crisis in 2008 because of too much debt.  Since then the debt has gone very, very high everywhere in the world.  So, the next economic problem is going to be the worst in my lifetime.”

Rogers understands the role of gold in an honest and stable monetary system and has been a great advocate for everybody owning gold.   Speak to your RME broker about a sensible plan to protect your wealth from the next crisis.