Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says he expects the next bear market to be the worst in his lifetime. “You should be extremely worried. If you’re not, you don’t know what’s going on,” he stressed, adding that there will be trouble in all markets.
Jim Rogers on US Debt Crisis, Worst Bear Market, and the US Dollar Losing Dominance
Veteran investor Jim Rogers reiterated his warnings about the biggest market downturn and the U.S. dollar losing its global reserve currency status during an interview with Real Vision last week. Rogers is George Soros’ former business partner who co-founded the Quantum Fund and Soros Fund Management. He cautioned:
The next bear market will be the worst in my lifetime, because the debt has gone up by such staggering amounts in the past 14 years.
Rogers reiterated his previous explanation that the U.S. experienced a bear market in 2008 due to excessive debt. He pointed out that since 2009 the debt level worldwide has skyrocketed. “We should always be concerned about Washington. They don’t have a clue what they’re doing. And they prove it day in and day out,” he opined.
The renowned investor also believes that the U.S. dollar will lose its status as the world’s reserve currency. Discussing the global de-dollarization trend, he emphasized that numerous countries are actively seeking alternatives to the U.S. dollar, partly due to concerns over its substantial debt issue. Moreover, he mentioned that the weaponization of the U.S. dollar creates an incentive for nations to reduce reliance on the USD. He warned:
You should be extremely worried. If you’re not, you don’t know what’s going on.
Rogers shared that he is “looking every day” for an alternative to the USD because he knows “something bad is going to happen in the currency markets in the next two or three years.” He recently said that the U.S. dollar’s time is coming to an end as countries seek alternatives to the USD. The veteran investor also expects interest rates to increase worldwide. While admitting that he does not know how high central banks will increase interest rates to curb inflation this time, he stressed: “The world has never seen the debt and the spending and the money printing like in the last few years. So something is going to have to be very, very ruinous to solve this problem this time.” Rogers warned:
There’ll be trouble in all the markets — property markets, stock markets, bond markets, currency markets, everything.
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