What Would Jim Rogers Do?

 

 

Jim Rogers would not be surprised if US stocks go down. Even more, he assumes they will.

Rogers Is Not Touching US Stocks

In an interview with MarketWatch, Jim Rogers stated that he won’t go near US stocks at the moment. He does see opportunity in Asian markets, including Japan, Russia, and China.

One of the reasons he does not want to buy US stocks at the moment, is because they are at all-time highs. He does not prefer to buy things when they reach these lofty heights. Japan, on the other hand, is about 50% below its all-time high and the Japanese Prime Minister Shinzo Abe underlined that he will continue with his expansive monetary policy. He is taking action to lift up the market.

Another market that is far from its all-time high is the Chinese stock market, which did make a serious jump this year, but dropped back dramatically in June. The Russian Micex index is one of the best performing stock markets globally this year.

Rogers also advised that the timing is not great to buy gold at the moment, because the yellow precious metal has been going through a correction for the last 4 years. If the opportunity presents itself to buy gold under $1,000 in the next two years, Rogers would take it.

Rogers Is Worried

Furthermore, Rogers is worried about the bond market, which is most likely experiencing a bubble. He added that the shock on the bond market is also exactly what can scare people and instigate a sell-off on the stock market.

Rogers expects bonds to go down for a while longer, which will frighten the bureaucrats at the central banks. This is also the reason why he expects a drop of 10 to 13 percent in stocks.