Right now, markets and financial analysts are celebrating about how the United States dollar is soaring and the economy is roaring again. All what’s missing are flappers, speakeasies and the slogan “keep cool with Coolidge.”
The greenback is trading well on the market, but compared to what exactly? The euro is in devastation, the yen isn’t getting any better, the pound sterling hasn’t mattered since the Second World War and the loonie is also in disarray.
Nonetheless, economists are happy that the U.S. dollar is rising again. However, one financial guru believes that a bubble is on the horizon, and if this is true, then he hopes he’s smart enough to sell his current holdings in the greenback.
Speaking in an interview with Hard Assets Investor, Rogers noted that he has zero confident in the U.S. dollar for the long-term, citing the national debt and it approaching bubble territory.
“I’m certainly not rushing out to buy at the moment. I’ve owned it for a couple of years. . . . I don’t have any confidence in the U.S. dollar to lead long term. After all, America’s the largest debtor nation in the history of the world, and our debts are going higher and higher all the time,” said Rogers. “The U.S. dollar could turn into a bubble down the road. If it does, and if I’m still there, and if I’ve got any brains, I hope I’m smart enough to sell it.”
Rogers also touched upon gold, a precious metal that remained stagnant for close to three years now. Currently trading at around $1,200 per ounce, Rogers confirmed that he is a gold holder but he isn’t buying any at the moment. If it does dip to under $1,000 then he would start purchasing again.
One of the reasons he isn’t buying gold at the moment is because the yellow metal hasn’t experienced a 50 percent correction in 15 years, which he says is unusual because most assets do go through such a correction every 15 years.
Will like to wait buying gold time wise first followed by price