Skyrocketing Debt Is Creating A Economic Problems; ‘Worst in my Lifetime’ Says Legendary Investor, Jim Rogers
- Legendary investor Jim Rogers warns of the biggest global economic meltdown in his lifetime.
- The upcoming U.S. Presidential elections in November could be the turning point in this extremely bullish market.
- Rogers has turned to precious metals such as gold and silver to reduce their exposure to the stock market.
James Beeland Rogers Jr., a marquee trader, and investor said in an interview with The Economic Times that the extreme debt offered around the world could see the worst economic downturn in his life yet. Speaking to the Economic Times, Jim said:
“The next time we have a problem, and we are having it now, it is going to be the worst in my lifetime. It is a simple statement. The debt is much, much, much higher now. It has to be worse. We have these problems every few years. The next is going to be horrible.”
Since 2008, the world has witnessed a growing value of debt with COVID-19 global pandemic setting up record levels of money printing and government expenditure. With the U.S. government printing and buying bonds in the Trillions, and other states printing cash to stimulate their economies, the stock markets around the world have kept on rising – a fact Rogers believes will not end well for investors.
However, Jim explains the rising equities markets as a “short term good feeling” as long as the money keeps being printed by politicians. According to him, the November U.S. Presidential elections are at the center of keeping the markets alive as politicians look forward to re-elections.
“Remember there is an election in the U.S. in six months in November and, all those guys want to get re-elected. They do not care about you and me and our kids. They care about November and getting re-elected.”
Once the elections are over and the high debt levels start biting, the market will pay the price, Jim added.
‘A solidified hedge'
To hedge his position on the stock market and economic downturn, Rogers stated he currently owns gold, silver, and commodities. He is yet to add on to his position in precious metals since 2019, but he doesn't sell his portion of the assets despite gold reaching an all-time high of bar-$2,000 an ounce, and silver doubling in price in 2020.
Jim also owns a substantial portion of his net worth in U.S. dollars as a haven in case of turmoil in the markets. He said,
“I own a lot of U.S. dollars because when the turmoil gets bad again and, it already is, people look for a safe haven. They think that U.S. dollars are a safe haven.”
Despite the growth of Bitcoin in 2020, Jim Rogers, who resides in Singapore, spoke to Aera dot in June, claiming the “value of the cryptocurrency may go to zero.”
Rogers is well-known for co-founding Quantum Fund with George Soros in the 70s before founding the Rogers Holdings Company and launching the Rogers International Commodities Index.