Jim Rogers warns of the worst bear market, in his lifetime, in his latest interview. 

So what should investors do, according to Jim Rogers?

“This is going to be the worst bear market in my lifetime. I own a lot of dollars not because it is a sound currency, but because when there is turmoil, people look for a safe haven. Many people think that the US dollar is a safe haven, but it is not. But people think it is, and that is why I own it and if the turmoil comes, more and more people will rush to the dollar to be safe, ” according to Jim Rogers. Indeed, the USD dollar is near a 52 week high with the US dollar index, DXY Index at 105.

“This is going to be the worst bear market in my lifetime”

JIM ROGERS

Regular readers may remember that we forecasted USD would outperform in 2022, a contrarian view at the time, for all the reasons that Jim Rogers states.

“Stock assets are collapsing everywhere. But, when there is a lot of pessimism, that often leads to a big rally if some good news comes. I do not know but maybe there will be peace in Ukraine, who knows? Then we will have a big rally but that will be the last rally,” added Jim Rogers.

Jim Rogers warns of a bear market, then a melt up, which is now hard to believe unless the Fed suddenly decides to reverse rate hikes.

The market is expecting the Fed to hike again, another 75 basis points, which is a quarter of one percent in July.

The way we can see a hot summer melt up playing out is if the second-quarter corporate results are dismal and more layoffs follow.

Already high profile companies like Tesla and Coinbase have laid off staff, and more companies could follow as the rate and pace of the economic decline accelerates.

“maybe there will be peace in Ukraine, who knows? Then we will have a big rally but that will be the last rally”

JIM ROGERS

But if the economic decline and financial crisis start to impact the banks, then perhaps the Fed, a banking cartel, will reverse monetary tightening and ease.

The economic decline is already feeding into pessimistic market sentiment as investors flock into US dollars. So widening peripheral sovereign bond yields in the eurozone and an emerging market economic crisis could trigger a tsunami of bad US-denominated loans in emerging countries.

“another collapse in emerging market currencies could be on the cards as the Fed seems to not care about the rate and pace of the economic slowdown”
Wealth Training Company

The last time the Fed implemented a 75 basis point hike that triggered the Tequila crisis, was the sudden devaluation of the Mexican peso in 1994.

So another collapse in emerging market currencies could be on the cards as the Fed seems to not care about the rate and pace of the economic slowdown. 

Tomorrow’s headlines could be about foreign investors fearing a default

My fifty cents worth is when you hear the banks squealing over defaults, the Fed will suddenly abandon its rate hikes. Until then, risk assets could go further into bear market territory.

Jim Rogers warns the worst bear market is coming in his life and recommends investors hold cash

See Jim Rogers warns worse bear market is coming interview here.