Jim Rogers thinks the sky is falling, and the legendary investor, Perma Bear, hopes to short the Magnificent 7′ stocks when the time is right.
The Magnificent Seven Stocks, where the title is a rip-off from the spaghetti western action film, is a group of seven high-performing and influential stocks of US companies.
They are;
Alphabet (GOOGL)
Amazon (AMZN)
Apple (AAPL)
Meta Platforms (META)
Microsoft (MSFT)
Tesla (TSLA)
Nvidia (NVDA)
“Perma Bear, hopes to short the Magnificent 7′ stocks when the time is right”
WEALTH TRAINING COMPANY
Some of these stocks could be overriding the AI mania greed wave.
The idea that AI will replace the workforce could be a fantasy.
Think about it, some jobs where mistakes are unforgiven, such as commercial airline pilot, doctor, surgeon, lawyer, dentist. If things go wrong, people want someone to sue.
Repair, restoration work. Then other jobs where humans prefer and seek human contact. Ministers of religion, caring workers, nurses, therapists, politicians and sex workers.
Sex doll brothels; are a growing trend? Seriously, what happens if the robotic computer crashes at a compromising moment? Imagine explaining that ignominious misadventure to emergency service on the other lines.
“The idea that AI will replace the workforce could be a fantasy”
WEALTH TRAINING COMPANY
Jim Rogers thinks the sky is falling, and perhaps he could be right for many reasons
Investor Psychology Cycle indicates that AI stocks could be in a mania. Greed and delusion could best describe AI stocks.
A vision of the workforce disappearing completely because of AI feels like snake oil to pump up stocks.
Sell the greed, buy the fear?
AI is an oxymoron because intelligence can’t be artificial, it can be simulated but not artificial.
But AI, simulated intelligence, is being used to enhance people’s existing skills, talents and capabilities in whatever their endeavours, whether it be creative or science engineering-based activities.
We could be on the cusp of a renaissance of discoveries that enhance and improve people’s lives. Equally, the technology could be used for sinister purposes. AI could be similar to nuclear technology with its dual applications, a benign technology to power a city or a sinister application to destroy it.
“Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble” – Jim Rogers
Taking a bearish view, Jim Rogers thinks the sky is falling
Jim Rogers sees an epic market bubble and looming economic disaster. He expects a multi-asset bubble to burst and the American economy to run into trouble.
“Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble,” said the veteran investor and travel author in a recent December interview.
Jim Rogers thinks the sky is falling and he is planning to profit from what he believes to be a pending calamity by shorting the magnificent 7
But with the central bank liquidity cycle moving from its trough in liquidity, maximum tightening, towards a loosening of liquidity conditions and the presidential election cycle scheduled for November this year, it could be premature to talk about shorting stocks. We don’t think it is a coincidence that the Fed will loosen financial conditions during a presidential election year.
The bond market is already showing early signs of recovering from its worst bond bear market in history in 2023.
So with loosening financial conditions, a Fed supporting the incumbent, Frankly, that is all that counts, bearing in mind the 2020 global lockdowns, the economy in freefall and the greatest bull market in stocks rallied on central bank liquidity.
Recovery in stocks could continue into 2024 if the Fed decides to support the market.
Nevertheless, Jim Rogers has dumped many of his stocks and bonds in anticipation of a painful slump, but he’s “not shorting yet because often at the end there’s a blowoff and things get crazy,” he said.
So Jim Rogers thinks the sky is falling, and he plans to profit by betting against stock-market darlings like Tesla and Nvidia when the time is right.
“When the market comes to an end, the last high flyers are the best shorts”
– Jim Rogers
Jim Rogers who co-founded the Quantum Fund and Soros Fund Management with George Soros is itching to bet against the “Magnificent Seven” stocks — Apple, Alphabet, Amazon, Microsoft, Meta, Tesla, and Nvidia.
“When the market comes to an end, the last high flyers are the best shorts,” he said. “The stocks that have done extremely well and are very expensive — that, I hope, is where I’m smart enough to short next time around,” he said.
Jim Rogers thinks a ballooning US public debt is problematic.
“I would suspect that next year things are not going to look as happy,” he said.
Rogers noted he wasn’t sure if a recession or mild downturn lies ahead, but he’s “worried” that there hasn’t been a prolonged economic slump since the 2008 financial crisis, and global debt loads have ballooned since then.
“The next problem has to be the worst in my lifetime because the debt is unbelievable,” he said.
Jim Rogers recommends owning precious metals, which tend to retain their value better than other assets during periods of panic.
“Everybody should have some silver and gold under the bed,” he said. “Look, all of us peasants know, when there’s a serious catastrophe, you better have some gold and silver in the closet, so I do.”
Jim Rogers thinks inflation, which has cooled significantly in the past year, would reaccelerate to painful levels.
He thinks the Fed is flying blind and has no idea what it’s doing, and dismisses most central bank’s leaders over the last century as clueless “bureaucrats and academics.”
Jim Rogers thinks the sky is falling, but you could grow white-haired waiting for that elusive economic collapse, financial meltdown
Those few at the top of the human food chain, growing wealth has never been so good. But, for many, the sky has already fallen in a kind of melt-up, collapsing living standards for the many.
Indeed, we are seeing the gentle march of millions into poverty. The next generation’s living standards will be worse than their parents for the first time in generations. Eating bugs and living in a pod isn’t sexy.
