Jim Rogers remains cautious about global stock indices hovering near all-time highs.
This year, 2024, has been a year of breakouts to new highs for assets, particularly in the final quarter, where the markets got their choice of US President elected in the November elections. The Trump bump and the mobilization of MAGA money is a tailwind on asset prices.
Everyone with a pension plan invested in stocks and crypto ETFs, from blue-collar to white-collar workers to billionaire investors, is noting the wealth effect.
Popular billionaire, popular capitalism?
“Nearly every stock market in the world has had an all-time high, or near an all-time high,” said Jim Rogers in a recent interview.
“Somebody better look out the window and get worried,” he added.
“Everyone with a pension plan invested in stocks and crypto ETFs, from blue-collar to white-collar workers to billionaire investors, is noting the wealth effect”
WEALTH TRAINING COMPANY
But is this the early or late stage of a secular bull cycle?
Earlier this year, reports showed that 14 of the world’s 20 largest stock markets hit record highs. “Just about everybody in the world has joined in now,” said Jim Rogers.
His caution comes from being a veteran investor, navigating turbulent times and understanding what often follows market euphoria.
“I’ve been around long enough and have read enough to know that when everybody is making a lot of money and piling in, it usually means things are going to go bad soon,” he said.
Rogers co-founded the Quantum Fund with George Soros in the 1973 bear market. From then till 1980, the portfolio returned 4,200%, while the S&P 500 rose 47%.
“I’ve been around long enough and have read enough to know that when everybody is making a lot of money and piling in, it usually means things are going to go bad soon”
JIM ROGERS
From memory Jim Rogers Remains Cautious
“I know from history that the world is going to have problems again … and when the world has problems … it’s nice to have some gold in the closet, or under the bed, have some silver in the closet,” he said. “Because no matter what, many people will turn to gold and silver in times of turmoil.”
Gold and silver have long been considered hedges against inflation. Jim Rogers points out that, unlike fiat currency, central banks can not print metals in unlimited quantities.
“I hope I am smart enough not to sell my gold and silver. I hope I am smart enough to buy more in the future,” he stated.
“The best way is to become a farmer” – Ray Dalio
But is smartness about having the mental agility to understand that times change where generations assign different values to assets? The smartphone generation values digital assets.
This mostly urban generation is gaining employment in the digital economy where their labour, intellectual or creative, is digitalized, coded and sent across the network in exchange for digital payments held in their digital wallet. Digital work for digital payments.
This young, progressive, often urban university-educated generation understands monetary inflation and sees cryptocurrencies as a potential vehicle to protect them against the cost of living crisis.
Jim Rogers remains cautious about global stock indices and non-tangible asset values
“The best way is to become a farmer,” he suggested, adding that if you’re up for the hard work, “you can make an absolute fortune” from working outdoors, getting dirty, and putting in long hours under the sun.
Rogers also highlighted the benefits of owning farmland, noting that it “will go up a lot in price.”
