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Jim Rogers Warns of Biggest Bear Market in His Lifetime

Jim Rogers Warns of Biggest Bear Market in His Lifetime

  • Veteran investor Jim Rogers has warned that the next bear market will be the biggest in his 80-year lifetime.
  • He believes this is due to the enormous amount of debt that has accumulated within global economic systems.
  • The Federal Reserve Open Market Committee (FOMC) has decided to pause raising interest rates for now, but foresee two more hikes by late 2020.

Rogers‘ Background and Investment Experience

Jim Rogers is an American investor who is closely associated with George Soros and a co-founder of Soros Fund Management. He has over 80 years of experience as an investor and warns that current conditions are similar to those prior to the Great Financial Crisis of 2008.

Excessive Debt Levels Pose Serious Risk

Rogers believes the excessive levels of debt have created an unsustainable situation. He references the great inflationary crisis of 1980, where interest rates on treasuries had to reach 21% in order to contain inflation. According to him, such a situation could soon manifest itself again.

Federal Reserve Pauses Rate Hikes

The Federal Reserve Open Market Committee (FOMC) recently decided to pause raising interest rates for now, but foresee two more hikes by late 2020. This decision may help alleviate some financial pressures but it does not address the underlying factor driving instability – namely excessive levels of debt.

Conclusion