U.S. stock markets have recorded two consecutive days of triple-digit losses after enduring the worst quarter on record. The Federal Reserve and Washington are pumping trillions of dollars into the economy, so you would expect nothing but historic gains every day. Not so, and you should not expect it.
Jim Rogers, the chairman of Rogers Holdings, believes he will experience “the worst bear market” of his lifetime in the next couple of years. In an interview with Bloomberg, Rogers argues that another market rout is close because of three primary threats:
– Coronavirus
– High debt levels
– Low interest rates.
According to Rogers, the worst is not over because “a gigantic amount of debt has been added.”
“There is absolutely no question that throughout history, when you’ve had bear markets, companies with low debt are the ones that people love the most because they don’t have to worry about bankruptcy,” he told the business news network.
How is he trading this market? He owns U.S. dollar and Russian and Chinese shares. He is also thinking of buying Japanese equities. He is waiting a bit longer to buy shares in agriculture, airlines, tourism, and transportation around the world.
It’s surprising that he did not mention gold and silver since he has been bullish over the years on the precious metals.
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