Posted on 06/09/2017 6:22:34 AM PDT by 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?
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Blodget: And how big a crash could we be looking at?
Rogers: It’s going to be the worst in your lifetime.
(Excerpt) Read more at businessinsider.com ...
Because they ARE kooks. Never been right.
Has this legendary genius sold all his stock and bought gold?
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.
...
What is the PPT and who is in it?
Big crashes don’t happen until the Fed inverts the yield curve.
Sears is closing plus others. Many Staples have closed. Ebay and Amazon sell a lot of new items plus many other item like filters, jewelry, eyeglasses etc. can be found on line cheaper. Trump needs to fire Yellen as she is a sorry econ type. Her monetary policy is crazy. Yellen leaves in Feb 2018. It should be now. This damn Senate needs to get off these hearings and start working. This I got fired and need a hearing is BS.I invested in Southern Company back in 1980. They pay dividends that are decent. I believe energy companies are almost a lock as we need gas and electric.
This. And I’m guilty of buying from Amazon.
Jim Rogers has been a pessimist for the longest time. He was once a partner of none other than George Soros himself.
If you predict doom long enough, it eventually happens.
Buy gold! GOLD!!! Wealth you can hold in your hand, just ask William Devane!!
I don’t know him that well..................
Correct, Rogers has been predicting the “crash of all crashes” routinely over the past many years and like every one trick pony gloom and doomer who is short the markets he will occasionally be right, just as is the proverbially broken clock.
Markets go up and markets go down and so this one will eventually sell off as they all must do.
For the more technically minded see this report.
https://www.advisorperspectives.com/dshort/updates/2017/06/01/is-the-stock-market-cheap
Bottom line all depends on corporate earnings and ultimately the consumer. It is these things which result in higher markets and the ‘when” of these stopping or slowing is completely unknown and completely unknowable.
Food, shelter, and the means to produce and protect them.
>>I’m an uninformed investor. I’m 60, and have a 401k. What should I be looking at as shelter from the storm?<<
Do not get stampeded into gold or similar. Gold is a so-so hedge against inflation but does nothing re: the stick market, except fluctuate more wildly.
Stay diversified. If you are super nervous you can reallocate into more cash but that will not make much money.
People who stayed in the market after the crash of 2008 made almost all their money back by end of 2009. It was the nervous nellies who lost out on the almost immediate recovery.
Stay the course, look at long term trends and always have enough cash in bank to handle 4 to 6 months of expenses and you should be OK no matter what happens except maybe SHTF.
My amazon stories:
Bought parts for my antique tractor.
It “learned” what cars I own. I have purchased spark plugs, brakes, full headlight and tail light housings, body parts, replacement bulbs, brake fluid, engine parts. It even warns me when a part doesn’t fit my vehicle.
And we bought lighting for my daugher’s wedding in a different state. It was shipped to her place.
I bought permathrin for bug control. TONS of stuff for my bands, clothing, shoes, etc.
And with prime, you don’t “build up” your order to avoid shipping. You need an oil filter for your car? Log in and buy it. It shows up at my home in rural KY in a few days, free shipping. We even do all of our window shopping there.
And here is the real rub: Since moving from Seattle to the middle of nowhere, and being a costco member since 1988, we were using Costco online a lot. However, Amazon Prime has made a serious dent in that business as well. We’ve found that we can find virtually anything there. Even weird obscure stuff.
And to make it worse, it is not just those of us in the sticks that benefit. My daughter in Seattle bought a game controller so she and her sister could play video games that night. It showed up in an hour.
i.e. it is also great for people in urban areas where traffic or the lack of a car is a serious problem regarding shopping.
And what about all the peripheral businesses in and around shopping malls. How about all those restaurants and the food courts?
So what retalers, exactly don’t get hurt by it? Well, I think those old fashioned small town cores in the country, or the ones embedded here and there in cities (Freemont and capital hill in the Seattle area would be an example) could actually thrive. They can become THE place people go (besides disneyland) to get out of the house and around people. And most of them are close enough to people’s homes to walk.
And that last line suggests an impact to the sale of gas and diesel. But i’m done going down rabbit holes with this.
It does mean that governments are gonna have to really increase taxes on INCOME of those that do have an income, though, just to survive.
“Jim Rogers is not a “kook”, and I take his opinion with merit as a well informed, sober, serious individual”
JR partners with Soros...
People who stayed in the market after the crash of 2008 made almost all their money back by end of 2009.
What’s to be guilty of? Amazon’s business model represents the future, and brick and mortar represents the past. The world moves on. I don’t lament big retailers hurting, or going out of business. Its the circle of life.....
Based on historic P/E levels against the price of stock, what do YOU think would be current fair valuation for the DOW and NASDAQ?
Companies are making money hand over fist. Yes, there are some ridiculous valuations (Tesla comes to mind); but among the core industrials, valuations seem fair, and profits are strong.
>>Tangible assets, precious metals etc.<<
They haven’t proven to be effective investments. If you anticipate inflation they might be a helpful part of your portfolio.
And having physical metals on hand may or may not be helpful if SHTF.
I am just referencing history of precious metals and the like. If you invested in gold as recently as 2010 you would be just breaking even. After that, you would probably have taken a bath.
The Dow has doubled in that time period.
Dow: $3.79
Nasdaq; $.49
You’ll have to do your own conversion to points. :)
Yes, I know some companies are making money hand over fist. Others are dying on the vine. We are living in really weird economic times. I think it has to do with manipulation of fiat money at an international level.
Bigdaddy,
I have to confess that I so see this world as “The Matrix” or a video game that I really don’t take this issue to seriously. The ultimate outcome of what is happening is so painfully obvious to me that I have fallen into a place where I just try to have fun with it and fiddle while Rome burns.
Life is a mist.
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