Renowned investor Jim Rogers anticipates a major market bubble implosion and an impending economic disaster, with plans to profit by shorting the “Magnificent Seven” stocks — Apple, Alphabet, Amazon, Microsoft, Meta, Tesla, and Nvidia — when the opportune moment arises.
In a recent interview with Soar Financially, Rogers expressed his concerns about various asset classes, stating, “Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble.” Despite having divested many of his stocks and bonds in anticipation of a substantial downturn, Rogers clarified that he hasn’t started shorting yet, recognizing that markets often experience a blowoff phase before a significant correction.
The seasoned investor pointed out “warning signs” of an impending collapse, including a select few stocks propelling major indices upward and novice investors boasting about easy profits in stock trading. Rogers, co-founder of the Quantum Fund and Soros Fund Management with George Soros, is particularly keen on shorting the high-flying “Magnificent Seven” stocks when the market reaches its peak.
“When the market comes to an end, the last high flyers are the best shorts,” he emphasized. “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.”
At 81 years old, Rogers also predicted challenges for the US economy due to its soaring debt levels, expressing concerns about the lack of a significant economic downturn since the 2008 financial crisis. He acknowledged uncertainty about whether a recession or a mild downturn lies ahead but emphasized his worry about the unprecedented global debt.
“The next problem has to be the worst in my lifetime because the debt is just unbelievable,” he remarked.
Rogers recommended that individuals hold precious metals like silver and gold, which historically retain value during periods of financial turmoil. He emphasized the importance of having gold and silver as a hedge in the face of a serious catastrophe.
In addition, Rogers predicted a resurgence of inflation to painful levels, criticizing the Federal Reserve’s actions. He accused the central bank of lacking a clear strategy, dismissing many of its leaders over the past century as clueless “bureaucrats and academics.”
While Rogers brings a wealth of experience and historical perspective, it’s worth noting that his predictions of a severe downturn have persisted for several years, yet both markets and the economy have defied these grim forecasts.
