JIM ROGERS: The worst crash in our lifetime is coming

Business Insider ^ | 8 Jun 17 | Jacqui Frank and Kara Chin

[SkyPilot]

Legendary investor Jim Rogers sat down with Business Insider CEO Henry Blodget on this week's episode of The Bottom Line. Rogers predicts a market crash in the next few years. One that he says will rival anything he has seen in his lifetime. Following is a transcript of the video.

Blodget: One of the things I’ve always admired about you as an investor is that you don’t talk about what should be. You figure out what is going to be and then, you do that. So what is going to be with respect to the stock market? What’s going to happen?

Rogers: I learned very early in my investing careers: I better not invest in what I want. I better invest in what’s happening in the world. Otherwise, I’ll be broke. Dead broke.Well, what’s going to happen is it’s going to continue. Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s gonna collapse and you should be very worried. But Henry, this is good for you. Because someone has to report it. So you have job security. You’re a lucky soul.

Blodget: Well, yeah, TV ratings do seem to go up during crashes but then they completely disappear when everyone is obliterated, so no one is hoping for that. So when is this going to happen?

Rogers: Later this year or next.

Blodget: Later this year or next?

Rogers: Yeah, yeah, yeah. Write it down.

Blodget: And what will trigger it?

.........................

Blodget: And how big a crash could we be looking at?

Rogers: It’s going to be the worst in your lifetime.

[SkyPilot]

These stories and thread always seem to follow the same pattern: those who throw stones at the doom predictors, and those who believe that the party cannot continue forever.

And there is never any firm convincing of either side.

Jim Rogers is not a "kook", and I take his opinion with merit as a well informed, sober, serious individual.

If you listen to the whole clip, and read between the lines, what Rogers is saying is that those in "in the know" realize that a crash is coming, but no one will really say what triggers it. However, Rogers predicts it will happen later this year or early next year.

Personally, I have longed believed that this market is dangerously inflated and the exponential growth we have seen since 2009 was never, ever supported by sound economic fundamentals. Manipulation, hot air, multipe QEs, ZIRP, and derivatives guarded by the secretive Plunge Protection Team (PPT) gang.

We'll just have to wait and see.

[Red Badger]

I won’t believe it until Kramer tells me it’s so.....................

[Erik Latranyi]

The swamp is still in control of many things, including the Federal Reserve.

If they cannot take Trump out politicially, they may try to crash the market and put the blame on him.

The swamp is fighting back.

[Erik Latranyi]

The swamp is still in control of many things, including the Federal Reserve.

If they cannot take Trump out politicially, they may try to crash the market and put the blame on him.

The swamp is fighting back.

[Don Corleone]

Put your money in TAXES. Its the only thing that is sure to go up

[PGR88]

He’s been saying this for 8 years.

In the long run, we’re all dead.

[Mr. Douglas]

Go to youtube and check out Bill Bonner. He’s not only predicted this for a while, but admits he’s mesmerized by how long they’ve been able to kick this can down the road.

And 2008 was a very interesting year. He talks of it. I posted a thread about a closed door weekend congressional hearing back then (that gave us QE). I was Robroy then, btw.

One thing I only learned of a year ago about that hearing was that at least two of the representatives in that meeting told their wives to go to ATM’s and get all the cash they can because the banks may not open on Monday. And at least one of the representatives, coming out of the meeting, looked like he had seen a ghost.

And the explanation is in this aging, scary and hilarious video that drives the point home squarely, regarding the mess we were in then (2014), and is exponentially worse now:

https://www.youtube.com/watch?v=TlN28DoL5qA

This whole thing is not about “if”. It is about “when”, and it’s NOT just the US.

[brownsfan]

I’m an uninformed investor. I’m 60, and have a 401k. What should I be looking at as shelter from the storm?

[caltaxed]

Jim Rogers makes Dick Morris look like Nostradamus.

[fuzzylogic]

lol - what a brave prediction. We’ve had several years of growth and statistically have some sort of crash in a similar period. So to predict a crash “within a few years” is pretty likely.

Do I get commission now?

[traderrob6]

Tangible assets, precious metals etc.

[wiggen]

Jim Cramer is a total blowhard.

[Mr. Douglas]

Not to dwell on particulars, but as much as I hate supporting virtual monopolies, I suspect Amazon Prime will destroy most brick and mortar once and for all. And it will happen FAST. I suspect a lot of them are already dead companies/malls walking trying to figure out how to stop the hemorrhaging before they finally throw in the towel.

[upbeat5]

No doubt Jim Rogers has made a lot of money in market and been very successful. He’s a veteran investor and very successful. He knows a lot more than me. However, he abides by the “predict early and often” mantra. The market will have a severe drop sometime.

It’s kind of like I read about a successful chartist. He was asked about drawing lines for support and resistence, fibonnaci, pivot points, etc etc on a chart. He said if you draw enough lines, price has got to hit one of them.

[wbill]

Well, I've no doubt that he's a serious man, and I believe that he thinks there's going to be a crash.

However, there are two things that are true.

- Economists have predicted 16 of the past 3 recessions.

- Sooner or later, one of them will be correct.

As long as you're well diversified, there's little else to be done. You might guess and hit it right, but that's little different than using lottery tickets as a retirement fund.

[Mr. Douglas]

If they cannot take Trump out politicially, they may try to crash the market and put the blame on him.

---

I think it will crash no matter who is president and no matter what nefarious motives some politicians have. It’s beyond their control. QE was their last play. It just pumped up the markets. The disconnect between markets and the real world has never been more stark.

What we need is a good war. But even that is a problem because we can’t take on more debt like we could in 1942.

[unixfox]

So I’m guessing that Rogers is going short on all of his stocks?

Sure he is.

[Mr. Douglas]

In my case, I bought 32 acres, 2/3 wooded, in central KY and left Seattle in 2011. I absolutely love it here and produce eggs for all the people I work with. I’ll get some cattle if the need arises.

[Mr Ramsbotham]

It’s like an Indian rain dance. Eventually, you know, it’s bound to rain, at which point you face down the unbelievers and say, “See?”

[Arm_Bears]

When has this guy ever been right?